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What's in the Offing for Boot Barn (BOOT) in Q2 Earnings?

Zacks Equity Research

Boot Barn Holdings, Inc. BOOT is likely to register an improvement in the bottom line when it reports second-quarter fiscal 2020 numbers. Notably, the CA-based company outperformed the Zacks Consensus Estimate in three of the trailing four quarters, the average being 26.1%.

Drawing focus back on the to-be-reported quarter, the Zacks Consensus Estimate for its earnings is pegged at 20 cents, suggesting an improvement of 66.7% from 12 cents reported in the year-ago period. We note that the consensus estimate for earnings remained unchanged in the last 30 days. The Zacks Consensus Estimate for revenues is pegged at $184 million, indicating about 9.4% growth from the year-ago reported figure.

Boot Barn Holdings, Inc. Price and EPS Surprise

 

Boot Barn Holdings, Inc. Price and EPS Surprise

Boot Barn Holdings, Inc. price-eps-surprise | Boot Barn Holdings, Inc. Quote

Factors at Play

Boot Barn is focused on enhancing omni-channel capabilities by boosting the digital business. This is likely to have boosted the company’s top line in the fiscal second quarter. It is also expected to have benefitted from store-expansion plans in the quarter under review.

Earlier, Boot Barn revealed the plan to open eight stores in the to-be-reported quarter, which should have contributed to the top line. Moreover, its efforts to expand work boots and apparel categories are likely to have aided, given the growing demand for these products.

Notably, the company has been witnessing solid same-store sales performance for a while. On the first-quarter conference call, management had projected the metric to perform well in the fiscal second quarter as well. The company anticipates same-store sales to increase approximately 7% in the quarter.

Apart from this, shutting underperforming stores, elimination of the July sale event, expansion of exclusive brands and lower markdowns are likely to have contributed to the merchandise margin and the bottom line in the fiscal second quarter. It also remains focused on lowering promotional activities, and eliminating unprofitable and low-margin items.

What the Zacks Model Unveils?

Our proven model does not conclusively predict an earnings beat for Boot Barn this time around. The combination of a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) and a positive Earnings ESP increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Although Boot Barn sports a Zacks Rank #1, its Earnings ESP of 0.00% makes surprise prediction difficult.

Stocks With Favorable Combination

Here are some better-ranked companies that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat:

Dollar General DG currently has an Earnings ESP of +0.72% and Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Lowe’s LOW has an Earnings ESP of +1.49% and a Zacks Rank #2 at present.

Target Corporation TGT currently has an Earnings ESP of +2.56% and a Zacks Rank #2.

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