Boot Barn Holdings, Inc. ( BOOT Quick Quote BOOT - Free Report) came up with fourth-quarter fiscal 2023 results, wherein the bottom line surpassed the Zacks Consensus Estimate but the top line missed the same. This lifestyle retailer of western and work-related footwear, apparel and accessories posted adjusted earnings of $1.53 per share for the fiscal fourth quarter, beating the Zacks Consensus Estimate of $1.45. The bottom line increased from $1.47 a share reported in the year-ago period. Shares of this Zacks Rank #4 (Sell) company have gained 9.4% in the past six months against the industry’s 7.1% decline. Let’s Introspect
Net sales of $425.7 million missed the Zacks Consensus Estimate of $443 million. However, the metric rose 11% year over year owing to the incremental sales from stores opened in the last 12 months and an extra week of sales in the fourth quarter of fiscal 2023, partly offset by lower consolidated same-store sales.
Consolidated same-store sales dipped 5.5% with retail store same-store sales slipping 3.3% and e-commerce same-store sales plunging 18.4%. Margins
Gross profit of $155.8 million increased from $148.8 million reported in the year-ago period. However, the gross margin decreased 220 basis points (bps) to 36.6% on account of 120 bps decline in merchandise margin and 100 bps deleverage in occupancy and distribution center costs. Merchandise margin dipped on 140 bps headwind from higher freight expense, partially offset by 30 bps of product margin expansion.
Income from operations of $62.7 million increased $0.3 million from the year-ago reported figure. The operating margin inched up 140 bps to 14.7%. A Sneak Peek Into Other Metrics
During the fiscal fourth quarter, Boot Barn Holdings opened 12 stores, taking the total count to 345 stores as of Apr 1, 2023. For fiscal 2024, BOOT anticipates opening 52 stores.
Boot Barn Holdings ended the quarter with cash and cash equivalents of $18.2 million and a stockholders’ equity of $776.5 million. At the end of the quarter, BOOT had a $66 million balance drawn on its $250 million revolving credit facility. For fiscal 2024, management envisions capital expenditures of $90-$95 million. Outlook
For fiscal 2024, management projects total sales of $1.69-$1.72 billion, indicating growth of 2-3% from the prior year. Same-store sales are expected to decline in the range of 6.5% to 4.5%, while retail store same-store sales are estimated to decrease in the 5.2-7% band. E-commerce same-store sales are expected to be down 3% to up 1%.
It anticipates a gross profit of $613.7-$629.7 million or 36.3% to 36.5% of sales. Gross profit consists of an expected 150 bps increase in merchandise margin which includes an improvement of 100 bps from freight expense. Income from operations is anticipated between $197.5 million and $209.9 million, representing about 11.7-12.2% of sales. Boot Barn envisions a net income of $4.7-$5 per share. For the fiscal first quarter, management expects same-store sales to decline 9% to 7% and total sales in the range of $357-$364 million. Retail store same-store sales are likely to decline 6% to 8% and e-commerce same-store sales are expected to decrease in the range of 15% to 17%. Further, gross profits are expected between $127.5 million and $131.1 million or nearly 35.7-36% of sales. Gross profit reflects an estimated increase of 80 bps in merchandise margin. Income from operations is expected between $33.7 million and $36.2 million, accounting for nearly 9.4-9.9% of sales in the first quarter. Boot Barn envisions net income of 79-85 cents per share for the quarter. Stocks to Consider
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Inter Parfums ( IPAR Quick Quote IPAR - Free Report) , Conagra Brands ( CAG Quick Quote CAG - Free Report) and General Mills ( GIS Quick Quote GIS - Free Report) . IPAR has an expected long-term earnings growth rate of 15% and a trailing four-quarter earnings surprise of 37.2%, on average. Inter Parfums 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 Inter Parfums’ current financial year sales and earnings suggests growth of 15.2% and 7.3%, respectively, from the year-ago reported numbers. Conagra Brands is one of the leading branded food companies of North America. It currently has a Zacks Rank of 1. CAG has a trailing four-quarter earnings surprise of 13.2%, on average. The Zacks Consensus Estimate for Conagra Brand’s current financial year sales and earnings suggests growth of 7.1% and 16.5%, respectively, from the year-ago reported numbers. General Mills is a major designer, marketer and distributor of premium lifestyle products. It currently carries a Zacks Rank of 2 (Buy). GIS has a trailing four-quarter earnings surprise of 8.1%, on average. The Zacks Consensus Estimate for General Mills’ current financial year sales and earnings suggests growth of 6.3% and 7.4%, respectively, from the year-ago reported numbers.