In This Article:
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Revenue Growth: Increased by 14% in the second quarter.
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Same-Store Sales Growth: Consolidated growth of 4.9%; stores increased 4.3%, e-commerce increased 10.1%.
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Earnings Per Diluted Share: $0.95, compared to $0.90 in the prior year.
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New Store Openings: 15 new stores opened, totaling 425 stores across 46 states.
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Gross Profit: Increased 14% to $153 million; gross profit rate increased to 35.9%.
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Net Income: $29 million for the quarter.
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Inventory Increase: 22% increase over the prior year, totaling $713 million.
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Cash and Credit: $37 million in cash, with $0 drawn on a $250 million revolving line of credit.
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Fiscal 2025 Sales Guidance: Raised to $1.91 billion, a 14% growth over fiscal '24.
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Capital Expenditures: Expected to be $120 million for the fiscal year.
Release Date: October 28, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Boot Barn Holdings Inc (NYSE:BOOT) reported a 14% increase in revenue for the second quarter, with consolidated same-store sales growth of 4.9%.
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The company opened 15 new stores in the second quarter, bringing the total to 425 stores across 46 states, and plans to open 60 new units this year.
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E-commerce sales grew by 10.1%, with bootbarn.com experiencing a 15% increase, showcasing strong online momentum.
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Merchandise margin increased by 70 basis points due to supply chain efficiencies, contributing to overall gross profit growth.
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Boot Barn Holdings Inc (NYSE:BOOT) raised its full-year guidance, expecting total sales to reach $1.91 billion, a 14% growth over the previous fiscal year.
Negative Points
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The departure of CEO James Conroy, who is leaving to join Ross Stores, introduces potential leadership uncertainty.
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SG&A expenses increased by 100 basis points, primarily due to higher incentive-based compensation, legal, and marketing expenses.
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Exclusive brand penetration decreased by 50 basis points, although this was expected due to high growth in the prior year.
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Occupancy costs of new stores contributed to a 60 basis point deleverage in buying, occupancy, and distribution center costs.
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The company anticipates potential distractions and uncertainties due to the upcoming election, which could impact consumer behavior.
Q & A Highlights
Q: Could you elaborate on the material inflection in comps that you saw as the second quarter progressed? And what trends have you seen in October? A: James Conroy, President and CEO, explained that there was broad-based sequential improvement across categories, channels, and regions. Every major merchandise department and region had positive same-store sales growth. October's performance was in line with the second quarter, with a 5% increase in same-store sales.