Back to top

Image: Shutterstock

Boot Barn's (BOOT) Q3 Earnings: What Awaits the Stock?

Read MoreHide Full Article

Boot Barn Holdings, Inc. (BOOT - Free Report) is scheduled to release third-quarter fiscal 2022 results on Jan 25, after the closing bell. The Zacks Consensus Estimate for quarterly revenues stands at $514.5 million, indicating a rise of 5.9% from the year-ago quarter’s actuals.

However, the bottom line is likely to decline year over year. The consensus mark for third-quarter earnings has decreased a penny to $1.75 in the past seven days, suggesting a decrease of 21.5% from the year-ago quarter’s figure.

This Irvine, CA-based lifestyle retailer has delivered a positive earnings surprise of 16.5% in the preceding quarter. It has a trailing four-quarter positive earnings surprise of 11.7%, on average.

Key Aspects to Note

Boot Barn’s third-quarter results were hurt by the challenging operating backdrop, including the supply-chain bottlenecks, inflationary pressures and a promotional landscape. Additionally, unfavorable currency fluctuations and stiff competition remain concerns. Deleverage in selling, general and administrative expenses on increased store payroll, other store-related costs and marketing expenses along with the aforesaid headwinds might have weighed on the company’s profitability during the quarter under review.

On its last earnings call, management had projected total sales between $502 million and $514 million for the fiscal third quarter. It anticipated same-store-sales decline of 3-5%, with retail store same store-sales of about minus 2% to flat and e-commerce same-store sales decrease of 17-21%. BOOT expected gross profit in the range of $184 million-$189 million or about 36.8% of sales, including an expected 200 basis point headwind from freight expenses.

However, management is focused on expanding its omnichannel capabilities and advanced in-store technology solutions as well as enhancing store experience. The company has also been expanding its product offerings. Growth in brand penetration and constant focus on full-price selling might have also been tailwinds.

What the Zacks Model Unveils

Our proven model doesn’t conclusively predict an earnings beat for Boot Barn 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. 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.

Boot Barn has an Earnings ESP of -0.65% and a Zacks Rank #3.

Stocks with Favorable Combination

Here are some companies which according to our model have the right combination of elements to beat on earnings:

Five Below (FIVE - Free Report) currently has an Earnings ESP of +0.63% and a Zacks Rank of 2. The company is likely to register bottom-line improvement when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $3.05 suggests an increase from the $2.49 reported in the year-ago quarter.

Five Below’s top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $1.10 billion, which indicates an improvement of 10.7% from the figure reported in the prior-year quarter. FIVE has a trailing four-quarter earnings surprise of 26.3%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

Oxford Industries (OXM - Free Report) currently has an Earnings ESP of +0.47% and a Zacks Rank of 2. The company is likely to register an increase in the bottom line when it reports fourth-quarter fiscal 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.14 suggests an increase of 27.4% from the year-ago reported number.

Oxford Industries’ top line is expected to increase year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $378.7 million, which suggests growth of 26.3% from the prior-year quarter. OXM has a trailing four-quarter earnings surprise of 18.9%, on average.

Crocs (CROX - Free Report) currently has an Earnings ESP of +1.79% and a Zacks Rank of 3. The company is likely to register bottom-line improvement when it reports fourth-quarter 2022 numbers. The Zacks Consensus Estimate for quarterly earnings per share of $2.15 remains flat with the year-ago quarter’s level.

Crocs’ top line is expected to rise year over year. The Zacks Consensus Estimate for quarterly revenues is pegged at $938.5 million, which indicates an improvement of 60% from the figure reported in the prior-year quarter. CROX has a trailing four-quarter earnings surprise of 18.2%, on average.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in