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Boot Barn (BOOT) Q3 Earnings In Line, Revenues Increase Y/Y
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Boot Barn Holdings, Inc. (BOOT - Free Report) came up with third-quarter fiscal 2021 results wherein the top line missed the Zacks Consensus Estimate while the bottom line matched the same. Markedly, both sales and earnings per share improved year over year, as the company successfully navigated through the challenging environment, courtesy of merchandising strategies, omni-channel capabilities and better expense management. Meanwhile, same-store sales in brick-&-mortar locations showed green shoots. We also note that merchandise margin remained solid, both in stores and online.
This lifestyle retailer of western and work-related footwear, apparel and accessories posted third-quarter earnings of $1.00 per share that came in line with the Zacks Consensus Estimate. Notably, the quarterly earnings increased from 85 cents in the year-ago period owing to robust full-price selling, reduced promotions and expense management. Excluding the tax benefit from share-based compensation, quarterly earnings were 99 cents, up from 81 cents in the prior-year period.
Net sales of $302.3 million fell short of the Zacks Consensus Estimate of $304.1 million. Nonetheless, the metric rose 6.5% year over year owing to same-store sales growth and sales contribution from new and acquired stores over the past 12 months. Impressively, consolidated same store sales increased 4.6% during the quarter under review, following a decline of 5.1% in the preceding quarter.
We note that retail store same store sales climbed 1.9% for the third quarter ended on Dec 26, 2020, after decreasing 9.1% in the second quarter. Remarkably, e-commerce sales surged 16.3% during the quarter under review. This followed an increase of 17.6% in the preceding quarter.
Management also notified that Boot Barn has commenced fourth quarter on an upbeat note with same-store sales growth of 17% in fiscal January. This represents an increase of 20% in retail store same store sales and a jump of 7% in e-commerce sales. As a result, net sales rose 21% during four weeks fiscal January. Boot Barn attributed the current sales trend to strong underlying business and external factors, including the receipt of stimulus payments at the start of the New Year.
Boot Barn Holdings, Inc. Price, Consensus and EPS Surprise
Gross profit of $106.8 million rose 10.1% from the prior-year period owing to higher sales. We note that gross margin expanded 120 basis points to 35.3% on account of 150 basis points improvement in merchandise margin, partly offset by deleverage of 30 basis points in buying and occupancy costs. Merchandise margin increased as a result of better full-price selling and lower promotions.
Income from operations of $41.6 million rose 19% from the year-ago quarter. Notably, operating margin increased 150 basis points to 13.8%.
A Sneak Peek into Other Metrics
So far in fiscal 2021, Boot Barn has opened seven stores and closed one, thereby taking the total count to 265 stores across 36 states. The company is targeting a total of 15 new store openings by the end of the fiscal year. Management informed that even amid the pandemic, the stores opened in new markets, mainly in the Northeast, are outperforming the company’s expectations.
Boot Barn ended the quarter with cash and cash equivalents of $76.3 million, long-term portion of notes payable of $109.6 million and stockholders’ equity of $362.6 million. For 39-week period ended on Dec 26, 2020, net cash provided by operating activities was $156.6 million.
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Tapestry (TPR - Free Report) , a Zacks Rank #1 stock, has a trailing four-quarter earnings surprise of 38.8%, on average.
Levi Strauss & Co. (LEVI - Free Report) has a trailing four-quarter earnings surprise of 39.4%, on average. Currently, the stock flaunts a Zacks Rank #1.
Capri Holdings (CPRI - Free Report) carries a Zacks Rank #2 (Buy). The company has a long-term earnings growth rate of 5.6%.
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Boot Barn (BOOT) Q3 Earnings In Line, Revenues Increase Y/Y
Boot Barn Holdings, Inc. (BOOT - Free Report) came up with third-quarter fiscal 2021 results wherein the top line missed the Zacks Consensus Estimate while the bottom line matched the same. Markedly, both sales and earnings per share improved year over year, as the company successfully navigated through the challenging environment, courtesy of merchandising strategies, omni-channel capabilities and better expense management. Meanwhile, same-store sales in brick-&-mortar locations showed green shoots. We also note that merchandise margin remained solid, both in stores and online.
Notably, this Zacks Rank #1 (Strong Buy) stock has soared 83.3% in the past three months compared with the industry’s rally of 60.8%. You can see the complete list of today’s Zacks #1 Rank stocks here.
Let’s Introspect
This lifestyle retailer of western and work-related footwear, apparel and accessories posted third-quarter earnings of $1.00 per share that came in line with the Zacks Consensus Estimate. Notably, the quarterly earnings increased from 85 cents in the year-ago period owing to robust full-price selling, reduced promotions and expense management. Excluding the tax benefit from share-based compensation, quarterly earnings were 99 cents, up from 81 cents in the prior-year period.
Net sales of $302.3 million fell short of the Zacks Consensus Estimate of $304.1 million. Nonetheless, the metric rose 6.5% year over year owing to same-store sales growth and sales contribution from new and acquired stores over the past 12 months. Impressively, consolidated same store sales increased 4.6% during the quarter under review, following a decline of 5.1% in the preceding quarter.
We note that retail store same store sales climbed 1.9% for the third quarter ended on Dec 26, 2020, after decreasing 9.1% in the second quarter. Remarkably, e-commerce sales surged 16.3% during the quarter under review. This followed an increase of 17.6% in the preceding quarter.
Management also notified that Boot Barn has commenced fourth quarter on an upbeat note with same-store sales growth of 17% in fiscal January. This represents an increase of 20% in retail store same store sales and a jump of 7% in e-commerce sales. As a result, net sales rose 21% during four weeks fiscal January. Boot Barn attributed the current sales trend to strong underlying business and external factors, including the receipt of stimulus payments at the start of the New Year.
Boot Barn Holdings, Inc. Price, Consensus and EPS Surprise
Boot Barn Holdings, Inc. price-consensus-eps-surprise-chart | Boot Barn Holdings, Inc. Quote
How Margins Fared
Gross profit of $106.8 million rose 10.1% from the prior-year period owing to higher sales. We note that gross margin expanded 120 basis points to 35.3% on account of 150 basis points improvement in merchandise margin, partly offset by deleverage of 30 basis points in buying and occupancy costs. Merchandise margin increased as a result of better full-price selling and lower promotions.
Income from operations of $41.6 million rose 19% from the year-ago quarter. Notably, operating margin increased 150 basis points to 13.8%.
A Sneak Peek into Other Metrics
So far in fiscal 2021, Boot Barn has opened seven stores and closed one, thereby taking the total count to 265 stores across 36 states. The company is targeting a total of 15 new store openings by the end of the fiscal year. Management informed that even amid the pandemic, the stores opened in new markets, mainly in the Northeast, are outperforming the company’s expectations.
Boot Barn ended the quarter with cash and cash equivalents of $76.3 million, long-term portion of notes payable of $109.6 million and stockholders’ equity of $362.6 million. For 39-week period ended on Dec 26, 2020, net cash provided by operating activities was $156.6 million.
Don’t Miss These Solid Bets
Tapestry (TPR - Free Report) , a Zacks Rank #1 stock, has a trailing four-quarter earnings surprise of 38.8%, on average.
Levi Strauss & Co. (LEVI - Free Report) has a trailing four-quarter earnings surprise of 39.4%, on average. Currently, the stock flaunts a Zacks Rank #1.
Capri Holdings (CPRI - Free Report) carries a Zacks Rank #2 (Buy). The company has a long-term earnings growth rate of 5.6%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>