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Factors Likely to Influence Boot Barn's (BOOT) Q3 Earnings

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Boot Barn Holdings, Inc. (BOOT - Free Report) is likely to register top- and bottom-line growth when it reports third-quarter fiscal 2021 numbers on Jan 25, after the closing bell. Markedly, the company’s preliminary results for the third quarter, issued last week, were quite encouraging. This lifestyle retailer of western and work-related footwear, apparel and accessories highlighted that prudent merchandising policies and e-commerce strength continued as upsides.

The Zacks Consensus Estimate for third-quarter fiscal 2021 revenues is pegged at $304 million, which indicates an increase of almost 7% from the year-ago quarter’s reported figure.

The Zacks Consensus Estimate for quarterly earnings went up 10 cents in the past 30 days and is currently pegged at 97 cents per share. The figure suggests a rise of 19.8% from the prior-year quarter’s level. Notably, the company’s bottom line surpassed the Zacks Consensus Estimate in two of the last four quarters. It has a trailing four-quarter earnings surprise of 21.9%, on average.

Preliminary View of Q3 Indicates Bright Prospects

Per the preliminary results, Boot Barn Holdings’ top-line increased 6.5% to nearly $302.3 million for the quarter ended Dec 26, 2020. Revenues were supported by strong same-store sales (comps), which advanced 4.6%. This includes retail stores’ same-store sales growth of about 1.9% and e-commerce sales increase of nearly 16.3%. Management is particularly encouraged regarding retail-store comps, which reverted to positive in spite of the ongoing pandemic-induced uncertainties.

Speaking of e-commerce, the company is likely to have gained from improved website traffic as well as conversions. Moreover, the company’s well-chalked endeavors to boost omni-channel offerings are likely to have aided online sales growth. In this context, the company is working toward strengthening Buy Online Pick-Up In Store and curbside pickups. It is also boosting fulfillment capacity to ensure meeting same-day deliveries promptly.

In its preliminary results announcement, management stated that efficient merchandise strategies, supply-chain management and disciplined promotional activity contributed to a robust full-price selling and higher merchandise margin in the third quarter. Such upsides are also likely to have supported the company’s third-quarter performance.

Further, third-quarter earnings of approximately $1.00 per share, were up from 85 cents recorded in the prior-year quarter. Excluding the tax benefit, earnings per share increased 22.2% to 99 cents, higher than 81 cents registered in the year-ago quarter.

Boot Barn Holdings, Inc. Price, Consensus and EPS Surprise

 

Boot Barn Holdings, Inc. Price, Consensus and EPS Surprise

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

 

What the Zacks Model Unveils

Our proven model predicts an earnings beat for Boot Barn Holdings this time around. 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Boot Barn Holdings sports a Zacks Rank #1 and an Earnings ESP of +2.74%.

More Stocks Poised to Beat Earnings Estimates

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

Tapestry, Inc. (TPR - Free Report) currently has an Earnings ESP of +6.70% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Foot Locker, Inc. (FL - Free Report) currently has an Earnings ESP of +5.86% and a Zacks Rank #1.

Capri Holdings Limited (CPRI - Free Report) has an Earnings ESP of +19.04% and a Zacks Rank #2, at present.

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