Factors to Know Ahead of Boot Barn Holdings' (BOOT) Q2 Earnings
Boot Barn Holdings, Inc. BOOT is likely to see a top-line improvement when it reports second-quarter fiscal 2024 earnings results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $378.2 million, indicating an improvement of 7.6% from the year-ago figure.
However, a cautious note is sounded for earnings, with the current Zacks Consensus Estimate pegged at 89 cents. This figure signals a 16% decline from the year-ago period. Despite this, market sentiments remain stable, with the consensus estimate being steady over the past 30 days.
Key Factors to Note
Boot Barn Holdings has been successfully navigating through the challenging environment, courtesy of merchandising strategies, omnichannel capabilities and better expense management. This, combined with the expansion of the store base and exclusive brand penetration, has helped it gain market share and, in turn, revenues.
In response to the decline in e-commerce operations, Boot Barn Holdings is proactively optimizing its strategies. Through the implementation of AI-driven solutions, the company aims to enhance customer experiences, foster brand loyalty and sustain sales growth in a challenging environment.
For the second quarter, Boot Barn Holdings guided total sales at the high end of the guidance range of $372 million-$379 million. However, same-store sales are anticipated to decline in the band of 3.5%-5.5%.
Boot Barn Holdings, Inc. Price, Consensus and EPS Surprise
Boot Barn Holdings, Inc. price-consensus-eps-surprise-chart | Boot Barn Holdings, Inc. Quote
While the aforesaid factors boost optimism to an extent, margins remain an area to watch. Management projected gross profit between $130.7 million and $134.2 million, accounting for about 35.1% to 35.4% of sales — a decrease from 36.7% reported in the year-ago period. This forecast factors in 180 basis points deleverage in buying, occupancy and distribution center costs and an estimated 50-basis point increase in the merchandise margin, including flat freight expenses year over year.
Furthermore, Boot Barn Holdings guided SG&A expenses between $95.3 million and $96.4 million, representing roughly 25.6% to 25.4% of sales. This reflects an increase from the 24.2% of sales reported in the prior year. The potential deleverage in SG&A expenses, attributed to higher store payroll, store-related expenses and corporate overhead costs, might exert pressure on the margins.
Consequently, the company projected earnings between 84 cents and 90 cents a share, which showcase a sharp decline from earnings of $1.06 reported in the year-ago period.
What the Zacks Model Unveils
Our proven model doesn’t conclusively predict an earnings beat for Boot Barn Holdings this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. However, that’s not the case here.
Although Boot Barn Holdings currently has a Zacks Rank #3, its Earnings ESP of 0.00% makes the surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks Poised to Beat Earnings Estimates
Here are some companies worth considering as our model shows that these have the right combination of elements to beat on earnings this season:
Build-A-Bear Workshop BBW currently has an Earnings ESP of +3.62% and sports a Zacks Rank #1. The Zacks Consensus Estimate for third-quarter fiscal 2023 earnings per share is pegged at 51 cents, flat year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.
Build-A-Bear Workshop’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $107.6 million, which indicates an increase of 3% from the figure reported in the prior-year quarter. BBW has a trailing four-quarter earnings surprise of 21.6%, on average.
Ulta Beauty ULTA currently has an Earnings ESP of +4.92% and a Zacks Rank of 2. The company is likely to register a decrease in the bottom line when it reports third-quarter fiscal 2023 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $5.00 suggests a decline of 6.4% from the year-ago reported number.
Ulta Beauty’s top line is expected to ascend year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.48 billion, which suggests an increase of 6.2% from the prior-year quarter. ULTA has a trailing four-quarter earnings surprise of 12.9%, on average.
Ralph Lauren RL currently has an Earnings ESP of +0.55% and a Zacks Rank #3. The company is expected to register a bottom-line decline when it reports second-quarter fiscal 2024 results. The Zacks Consensus Estimate for quarterly earnings per share of $1.91 suggests a drop of 14.4% from the year-ago quarter.
Ralph Lauren’s top line is anticipated to rise year over year. The consensus mark for revenues is pegged at $1.61 billion, indicating an increase of 1.6% from the figure reported in the year-ago quarter. RL has a trailing four-quarter earnings surprise of 17.3%, on average.
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Ralph Lauren Corporation (RL) : Free Stock Analysis Report
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