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Boot Barn (BOOT) Posts Preliminary Q3 Results, Sales Up 5.9%
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Boot Barn Holdings, Inc. (BOOT - Free Report) reported preliminary results for the third quarter of fiscal 2023. We note that the company generated total sales at the upper end of its guidance despite facing late December storms that hurt sales during the highest volume days in the reported quarter.
However, new store sales continued to exceed expectations, leading to approximately flat year-over-year retail same-store sales. In addition, Boot Barn witnessed a merchandise margin rate roughly in line with the last year’s record-setting performance, thus normalizing anticipated freight challenges. Let’s delve deeper.
Preliminary Results
Encouragingly, this lifestyle retailer of western and work-related footwear, apparel and accessories highlighted that net sales jumped 5.9% year over year to nearly $514.6 million for the quarter that ended Dec 24, 2022. Third-quarter fiscal 2023 same-store sales dipped 3.6%, cycling a 54.2% same-store sales increase in the prior-year period. Further, retail store same-store sales slipped about 0.8% and e-commerce sales decreased roughly 15.2%.
We note that merchandise margins plunged 190 basis points (bps) year over year, mainly driven by a 180 basis-point headwind from increased freight expenses.
Meanwhile, third-quarter earnings came in at approximately $1.74 per share, compared with $2.27 recorded in the year-ago period. The quarterly earnings included gains of about 4 cents owing to income tax accounting for share-based compensation.
What’s More?
We note that the foregoing anticipated results are preliminary and subject to the completion of normal quarter-end accounting procedures and closing adjustments. Management intends to report third-quarter results in late January and will provide the fourth-quarter view.
Management remains optimistic about the store pipeline, inventory levels and the overall business. Boot Barn is likely to deliver growth, given the store-productivity levels are continuing to surpass the pre-pandemic levels, coupled with the opportunity to expand the store footprint. BOOT opened 12 stores in the fiscal third quarter, bringing the total store count to 333.
Image Source: Zacks Investment Research
A glimpse of the Zacks Rank #2 (Buy) company’s price performance shows that its shares have gained 9.8% over the past three months, outshining its industry’s 17.2% increase.
Key Picks in Retail
We highlighted three top-ranked stocks, namely Tecnoglass (TGLS - Free Report) , Chico's FAS and Urban Outfitters (URBN - Free Report) .
Tecnoglass manufactures and sells architectural glass,windows, and aluminum products for the residential and commercial construction industries. TGLS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Tecnoglass’ current financial-year sales and EPS suggests 11.2% and 9% growth, respectively, from the year-ago reported figures. TGLS has a trailing four-quarter earnings surprise of 26.9%, on average.
Chico's FAS, an omnichannel specialty retailer, currently sports a Zacks Rank of 1. CHS has a trailing four-quarter earnings surprise of 87.5%, on average.
The Zacks Consensus Estimate for Chico's FAS’s current financial-year sales and EPS suggests growth of 19.6% and 127.5%, respectively, from the year-ago reported figures.
Urban Outfitters, a fashion apparel and accessories retailer, currently carries a Zacks Rank of 2. The company has a trailing four-quarter earnings surprise of 11.2%, on average.
The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and EPS suggests 3% and 27.9% growth, respectively, from the year-ago reported figures.
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Boot Barn (BOOT) Posts Preliminary Q3 Results, Sales Up 5.9%
Boot Barn Holdings, Inc. (BOOT - Free Report) reported preliminary results for the third quarter of fiscal 2023. We note that the company generated total sales at the upper end of its guidance despite facing late December storms that hurt sales during the highest volume days in the reported quarter.
However, new store sales continued to exceed expectations, leading to approximately flat year-over-year retail same-store sales. In addition, Boot Barn witnessed a merchandise margin rate roughly in line with the last year’s record-setting performance, thus normalizing anticipated freight challenges. Let’s delve deeper.
Preliminary Results
Encouragingly, this lifestyle retailer of western and work-related footwear, apparel and accessories highlighted that net sales jumped 5.9% year over year to nearly $514.6 million for the quarter that ended Dec 24, 2022. Third-quarter fiscal 2023 same-store sales dipped 3.6%, cycling a 54.2% same-store sales increase in the prior-year period. Further, retail store same-store sales slipped about 0.8% and e-commerce sales decreased roughly 15.2%.
We note that merchandise margins plunged 190 basis points (bps) year over year, mainly driven by a 180 basis-point headwind from increased freight expenses.
Meanwhile, third-quarter earnings came in at approximately $1.74 per share, compared with $2.27 recorded in the year-ago period. The quarterly earnings included gains of about 4 cents owing to income tax accounting for share-based compensation.
What’s More?
We note that the foregoing anticipated results are preliminary and subject to the completion of normal quarter-end accounting procedures and closing adjustments. Management intends to report third-quarter results in late January and will provide the fourth-quarter view.
Management remains optimistic about the store pipeline, inventory levels and the overall business. Boot Barn is likely to deliver growth, given the store-productivity levels are continuing to surpass the pre-pandemic levels, coupled with the opportunity to expand the store footprint. BOOT opened 12 stores in the fiscal third quarter, bringing the total store count to 333.
Image Source: Zacks Investment Research
A glimpse of the Zacks Rank #2 (Buy) company’s price performance shows that its shares have gained 9.8% over the past three months, outshining its industry’s 17.2% increase.
Key Picks in Retail
We highlighted three top-ranked stocks, namely Tecnoglass (TGLS - Free Report) , Chico's FAS and Urban Outfitters (URBN - Free Report) .
Tecnoglass manufactures and sells architectural glass,windows, and aluminum products for the residential and commercial construction industries. TGLS currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Tecnoglass’ current financial-year sales and EPS suggests 11.2% and 9% growth, respectively, from the year-ago reported figures. TGLS has a trailing four-quarter earnings surprise of 26.9%, on average.
Chico's FAS, an omnichannel specialty retailer, currently sports a Zacks Rank of 1. CHS has a trailing four-quarter earnings surprise of 87.5%, on average.
The Zacks Consensus Estimate for Chico's FAS’s current financial-year sales and EPS suggests growth of 19.6% and 127.5%, respectively, from the year-ago reported figures.
Urban Outfitters, a fashion apparel and accessories retailer, currently carries a Zacks Rank of 2. The company has a trailing four-quarter earnings surprise of 11.2%, on average.
The Zacks Consensus Estimate for Urban Outfitters’ current financial-year sales and EPS suggests 3% and 27.9% growth, respectively, from the year-ago reported figures.