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Boot Barn (BOOT) Q3 Earnings Meet, Revenues Increase Y/Y
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Boot Barn Holdings, Inc. (BOOT - Free Report) came up with third-quarter fiscal 2023 results wherein the top and the bottom line matched the Zacks Consensus Estimate.
This lifestyle retailer of western and work-related footwear, apparel and accessories posted adjusted earnings of $1.74 per share for the fiscal third quarter, meeting the Zacks Consensus Estimate. The bottom line plunged from $2.27 a share reported in the year-ago period.
This presently Zacks Rank #3 (Hold) stock has increased 19.9% in the past six months compared to the industry’s 16.6% growth.
Let’s Introspect
Net sales of $514.6 million were in line with the Zacks Consensus Estimate. However, the metric rose 5.9% year over year owing to the incremental sales from stores opened in the last twelve months, partly offset by lower consolidated same-store sales. Higher average unit retail prices, somewhat driven by inflation, also added to the net sales.
Image Source: Zacks Investment Research
Consolidated same-store sales dipped 3.6% with retail store same-store sales slipping 0.8% and e-commerce same-store sales plunging 15.2%.
How Margins Fare
Gross profit of $187.8 million fell 2% from the prior-year period’s level on increased freight expenses and merchandise cost. The gross margin decreased 290 basis points to 36.5% on account of 190 basis points decline in merchandise margin, and 100 basis points deleverage in occupancy and distribution center costs. Merchandise margin dipped on 180 basis-point headwind from higher freight expense.
Income from operations of $72.5 million plunged from $92.2 million in the year-ago quarter. The The operating margin tumbled 490 basis points to 14.1%.
A Sneak Peek into Other Metrics
During the fiscal third quarter, Boot Barn Holdings opened 12 stores, taking the total count to 333 stores as of Dec 24, 2022. For fiscal 2023, BOOT anticipates opening 43 stores.
Boot Barn Holdings ended the quarter with cash and cash equivalents of $50.4 million and a stockholders’ equity of $729.2 million. At the end of the quarter, BOOT had a $59.1 million balance drawn on its $250 million revolving credit facility.
For fiscal 2023, management envisions capital expenditures of $90-95 million.
Outlook
Management projects total sales of $1.67-$1.68 billion, indicating growth of 12.2-12.9% versus the prior year. Same-store sales range of about 0.5-1%, with retail store same-store sales of 2.5-3.0% and e-commerce same-store sales of (10.5)% to (9.5 )%.
It anticipates a gross profit of $611-615 million or 36.6% of sales. Gross profit consists of an expected 140 basis point decrease from freight expenses, somewhat offset by 40 basis points of product margin expansion. Income from operations is anticipated between $228 million and $232 million, representing about 13.7-13.8% of sales. Boot Barn envisions a net income of $5.51-$5.60 per share.
Fiscal 2023 is a 53-week year. Boot Barn Holdings predicts delivering nearly $34 million of sales and earnings per share of 19 cents in the 53rd week.
For the fiscal first quarter, management expects same-store sales growth of (3)% to (0.5)% and total sales of $438-$448 million. Retail store same-store sales are likely to be flat to 2% growth and e-commerce same-store sales of (20.0)% to (16.0 )%. Further, gross profits are expected between $156 million and $160 million, or nearly 35.7% of sales. Gross profit comprises an estimated 290 basis point decline from freight expenses, somewhat offset by 40 basis points of product margin expansion.
Income from operations is expected between $59 million and $63 million, accounting for nearly 13.5-14% of sales in the fourth quarter. Boot Barn envisions net income of $1.42-$1.51 per share for the quarter.
Solid Picks in Retail
We highlighted three top-ranked stocks, namely Tecnoglass (TGLS - Free Report) , Chico's FAS and Capri Holdings (CPRI - Free Report) .
Tecnoglass manufactures and sells architectural glass, windows and aluminum products for 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 growth of 11.2% and 9%, 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.
Capri Holdings, a global fashion luxury group of iconic brands like Versace, Jimmy Choo and Michael Kors, carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Capri Holdings’ current financial-year sales and earnings per share suggests growth of 0.9% and 10.5%, respectively, from the corresponding year-ago tallies. CPRI has a trailing four-quarter earnings surprise of 21%, on average.
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Boot Barn (BOOT) Q3 Earnings Meet, Revenues Increase Y/Y
Boot Barn Holdings, Inc. (BOOT - Free Report) came up with third-quarter fiscal 2023 results wherein the top and the bottom line matched the Zacks Consensus Estimate.
This lifestyle retailer of western and work-related footwear, apparel and accessories posted adjusted earnings of $1.74 per share for the fiscal third quarter, meeting the Zacks Consensus Estimate. The bottom line plunged from $2.27 a share reported in the year-ago period.
This presently Zacks Rank #3 (Hold) stock has increased 19.9% in the past six months compared to the industry’s 16.6% growth.
Let’s Introspect
Net sales of $514.6 million were in line with the Zacks Consensus Estimate. However, the metric rose 5.9% year over year owing to the incremental sales from stores opened in the last twelve months, partly offset by lower consolidated same-store sales. Higher average unit retail prices, somewhat driven by inflation, also added to the net sales.
Image Source: Zacks Investment Research
Consolidated same-store sales dipped 3.6% with retail store same-store sales slipping 0.8% and e-commerce same-store sales plunging 15.2%.
How Margins Fare
Gross profit of $187.8 million fell 2% from the prior-year period’s level on increased freight expenses and merchandise cost. The gross margin decreased 290 basis points to 36.5% on account of 190 basis points decline in merchandise margin, and 100 basis points deleverage in occupancy and distribution center costs. Merchandise margin dipped on 180 basis-point headwind from higher freight expense.
Income from operations of $72.5 million plunged from $92.2 million in the year-ago quarter. The The operating margin tumbled 490 basis points to 14.1%.
A Sneak Peek into Other Metrics
During the fiscal third quarter, Boot Barn Holdings opened 12 stores, taking the total count to 333 stores as of Dec 24, 2022. For fiscal 2023, BOOT anticipates opening 43 stores.
Boot Barn Holdings ended the quarter with cash and cash equivalents of $50.4 million and a stockholders’ equity of $729.2 million. At the end of the quarter, BOOT had a $59.1 million balance drawn on its $250 million revolving credit facility.
For fiscal 2023, management envisions capital expenditures of $90-95 million.
Outlook
Management projects total sales of $1.67-$1.68 billion, indicating growth of 12.2-12.9% versus the prior year. Same-store sales range of about 0.5-1%, with retail store same-store sales of 2.5-3.0% and e-commerce same-store sales of (10.5)% to (9.5 )%.
It anticipates a gross profit of $611-615 million or 36.6% of sales. Gross profit consists of an expected 140 basis point decrease from freight expenses, somewhat offset by 40 basis points of product margin expansion. Income from operations is anticipated between $228 million and $232 million, representing about 13.7-13.8% of sales. Boot Barn envisions a net income of $5.51-$5.60 per share.
Fiscal 2023 is a 53-week year. Boot Barn Holdings predicts delivering nearly $34 million of sales and earnings per share of 19 cents in the 53rd week.
For the fiscal first quarter, management expects same-store sales growth of (3)% to (0.5)% and total sales of $438-$448 million. Retail store same-store sales are likely to be flat to 2% growth and e-commerce same-store sales of (20.0)% to (16.0 )%. Further, gross profits are expected between $156 million and $160 million, or nearly 35.7% of sales. Gross profit comprises an estimated 290 basis point decline from freight expenses, somewhat offset by 40 basis points of product margin expansion.
Income from operations is expected between $59 million and $63 million, accounting for nearly 13.5-14% of sales in the fourth quarter. Boot Barn envisions net income of $1.42-$1.51 per share for the quarter.
Solid Picks in Retail
We highlighted three top-ranked stocks, namely Tecnoglass (TGLS - Free Report) , Chico's FAS and Capri Holdings (CPRI - Free Report) .
Tecnoglass manufactures and sells architectural glass, windows and aluminum products for 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 growth of 11.2% and 9%, 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.
Capri Holdings, a global fashion luxury group of iconic brands like Versace, Jimmy Choo and Michael Kors, carries a Zacks Rank of 2 at present.
The Zacks Consensus Estimate for Capri Holdings’ current financial-year sales and earnings per share suggests growth of 0.9% and 10.5%, respectively, from the corresponding year-ago tallies. CPRI has a trailing four-quarter earnings surprise of 21%, on average.