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Boot Barn's Q4 Earnings Top Estimates, Store Growth Accelerates
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Key Takeaways
Kontoor Brands sees outdoor wear as a durable growth market within a $400B global opportunity.
KTB views Helly Hansen's low U.S. brand awareness as a major long-term growth opportunity.
Kontoor Brands is investing in innovation, footwear and expansion to boost outdoor growth.
Boot Barn Holdings, Inc. (BOOT - Free Report) posted fourth-quarter fiscal 2026 results, with both the top and bottom lines surpassing the Zacks Consensus Estimate. Both the top and bottom lines saw strong year-over-year growth.
BOOT Q4 Results: Key Insights
The company reported earnings of $1.45 per share, which rose 18.9% from $1.22 per share in the year-ago period. The metric surpassed the Zacks Consensus Estimate of $1.43.
Boot Barn Holdings, Inc. Price, Consensus and EPS Surprise
Net sales increased 18.7% year over year to $538.8 million from $453.7 million in the prior-year period, and came in ahead of the Zacks Consensus Estimate of $533 million. The increase was driven by incremental sales from new stores and higher consolidated same-store sales.
Consolidated same-store sales rose 6.1%, which was higher than the Zacks Consensus Estimate of 4.4% growth. This growth was mainly driven by a 5.2% increase in retail store same-store sales and a 14.1% increase in e-commerce same-store sales.
Boot Barn opened 25 new stores during the quarter, bringing its store count to 539 at quarter's end.
Boot Barn's Margin & Cost Performance
Gross profit increased 16.1% to $195.7 million from $168.6 million in the prior-year period, supported by higher sales growth. However, gross margin declined 80 basis points to 36.3% from 37.1% in the prior-year period, mainly due to deleverage in buying, occupancy and distribution center costs, along with a 30-basis-point decline in merchandise margin. The merchandise margin decline reflected the impact of cycling unusually low shrink and freight expenses from the prior year, partially offset by improved buying scale efficiencies and higher penetration of exclusive brands.
Selling, General & Administrative expenses (SG&A) were $138.5 million, up 16.5% from $118.9 million in the prior-year period. SG&A, as a percentage of sales, was 25.7% compared with 26.2% a year ago. Higher store payroll and store-related expenses tied to a larger fleet, along with increased marketing spend, drove the year-over-year dollar increase, while leverage on the higher sales base helped the rate improve.
Income from operations increased 15.2% year over year to $57.2 million from $49.7 million. The operating income margin declined 40 basis points to 10.6% from 11% in the prior-year period.
Boot Barn’s Financial Position
Boot Barn ended fiscal 2026 with cash and cash equivalents of $141 million, up from $69.8 million at the prior-year end. The company also noted that average inventory per store declined about 0.6% on a same-store basis compared with fiscal 2025 and that it had nothing drawn on its $250 million revolving credit facility.
Cash generation strengthened meaningfully. Net cash provided by operating activities was $304.9 million in fiscal 2026 compared with $147.5 million in fiscal 2025, while capital spending totaled $178.6 million. Boot Barn repurchased 68,472 shares for $12.5 million during the quarter and 286,504 shares for $50 million during fiscal 2026 under its $200 million authorization.
BOOT Lays Out Fiscal 2027 Outlook
For fiscal 2027, this Zacks Rank #3 (Hold) company expects to open 70 stores, in addition to 10 stores that were accelerated into the fourth quarter of fiscal 2026. The company guided to total sales of $2.578-$2.623 billion, implying 14%-16% growth, and consolidated same-store sales growth of 2%-4%, with retail same-store sales growth of 1%-3% and e-commerce same-store sales growth of 11%-13%.
The outlook also calls for merchandise margin of $1.326-$1.349 billion, or approximately 51.4% of sales. The gross profit is expected to be in the range of $971-$994 million, or about 37.7%-37.9% of sales. SG&A expenses are expected to be in the range of $636-$641 million or 24.7%-24.4% of sales and income from operations of $335-$353 million, or roughly 13%-13.5% of sales. Earnings per share are expected to be between $8.21 and $8.64. Capital expenditure is estimated to be in the range of $125-$130 million.
For the first quarter of fiscal 2027, the company expects total sales between $574 million and $584 million, representing year-over-year growth of 14% to 16%. Consolidated same-store sales are projected to increase 2% to 4%, supported by retail same-store sales growth of 1% to 3% and stronger e-commerce same-store sales growth of 12% to 14%.
The company expects merchandise margin of $295-$300 million, or 51.5% of sales, and gross profit margins between $213 million and $218 million, or 37.1% and 37.3%. SG&A is projected to be between $147 million and $149 million, or 25.7%- 25.5% of sales, with operating income expected to be between $65 million and $69 million, or 11.4%-11.9% of sales, while earnings per share are expected to be in the range of $1.62-$1.71.
The company’s shares have plunged 10.6% in the past year compared with the industry’s decline of 8%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Tapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia, and internationally. At present, TPR flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TPR’s current fiscal-year sales and earnings implies growth of 13.2% and 36.3%, respectively, from the year-ago figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Victoria’s Secret & Co. (VSCO - Free Report) operates as a specialty retailer of women's intimate apparel and other apparel and beauty products worldwide. At present, VSCO carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Victoria's Secret’s current fiscal-year sales and earnings indicates growth of 6.2% and 16.3%, respectively, from the year-ago figures. VSCO delivered a trailing four-quarter earnings surprise of 55.1%, on average.
Levi Strauss & Co. (LEVI - Free Report) designs, markets, and sells apparel and related accessories for men, women, and children in the United States and internationally. At present, LEVI carries a Zacks Rank of 2.
The Zacks Consensus Estimate for LEVI’s current fiscal-year sales and earnings implies growth of 5.2% and 11.9%, respectively, from the year-ago figures. LEVI has delivered a trailing four-quarter earnings surprise of 21.4%, on average.
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Boot Barn's Q4 Earnings Top Estimates, Store Growth Accelerates
Key Takeaways
Boot Barn Holdings, Inc. (BOOT - Free Report) posted fourth-quarter fiscal 2026 results, with both the top and bottom lines surpassing the Zacks Consensus Estimate. Both the top and bottom lines saw strong year-over-year growth.
BOOT Q4 Results: Key Insights
The company reported earnings of $1.45 per share, which rose 18.9% from $1.22 per share in the year-ago period. The metric surpassed the Zacks Consensus Estimate of $1.43.
Boot Barn Holdings, Inc. Price, Consensus and EPS Surprise
Boot Barn Holdings, Inc. price-consensus-eps-surprise-chart | Boot Barn Holdings, Inc. Quote
Net sales increased 18.7% year over year to $538.8 million from $453.7 million in the prior-year period, and came in ahead of the Zacks Consensus Estimate of $533 million. The increase was driven by incremental sales from new stores and higher consolidated same-store sales.
Consolidated same-store sales rose 6.1%, which was higher than the Zacks Consensus Estimate of 4.4% growth. This growth was mainly driven by a 5.2% increase in retail store same-store sales and a 14.1% increase in e-commerce same-store sales.
Boot Barn opened 25 new stores during the quarter, bringing its store count to 539 at quarter's end.
Boot Barn's Margin & Cost Performance
Gross profit increased 16.1% to $195.7 million from $168.6 million in the prior-year period, supported by higher sales growth. However, gross margin declined 80 basis points to 36.3% from 37.1% in the prior-year period, mainly due to deleverage in buying, occupancy and distribution center costs, along with a 30-basis-point decline in merchandise margin. The merchandise margin decline reflected the impact of cycling unusually low shrink and freight expenses from the prior year, partially offset by improved buying scale efficiencies and higher penetration of exclusive brands.
Selling, General & Administrative expenses (SG&A) were $138.5 million, up 16.5% from $118.9 million in the prior-year period. SG&A, as a percentage of sales, was 25.7% compared with 26.2% a year ago. Higher store payroll and store-related expenses tied to a larger fleet, along with increased marketing spend, drove the year-over-year dollar increase, while leverage on the higher sales base helped the rate improve.
Income from operations increased 15.2% year over year to $57.2 million from $49.7 million. The operating income margin declined 40 basis points to 10.6% from 11% in the prior-year period.
Boot Barn’s Financial Position
Boot Barn ended fiscal 2026 with cash and cash equivalents of $141 million, up from $69.8 million at the prior-year end. The company also noted that average inventory per store declined about 0.6% on a same-store basis compared with fiscal 2025 and that it had nothing drawn on its $250 million revolving credit facility.
Cash generation strengthened meaningfully. Net cash provided by operating activities was $304.9 million in fiscal 2026 compared with $147.5 million in fiscal 2025, while capital spending totaled $178.6 million. Boot Barn repurchased 68,472 shares for $12.5 million during the quarter and 286,504 shares for $50 million during fiscal 2026 under its $200 million authorization.
BOOT Lays Out Fiscal 2027 Outlook
For fiscal 2027, this Zacks Rank #3 (Hold) company expects to open 70 stores, in addition to 10 stores that were accelerated into the fourth quarter of fiscal 2026. The company guided to total sales of $2.578-$2.623 billion, implying 14%-16% growth, and consolidated same-store sales growth of 2%-4%, with retail same-store sales growth of 1%-3% and e-commerce same-store sales growth of 11%-13%.
The outlook also calls for merchandise margin of $1.326-$1.349 billion, or approximately 51.4% of sales. The gross profit is expected to be in the range of $971-$994 million, or about 37.7%-37.9% of sales. SG&A expenses are expected to be in the range of $636-$641 million or 24.7%-24.4% of sales and income from operations of $335-$353 million, or roughly 13%-13.5% of sales. Earnings per share are expected to be between $8.21 and $8.64. Capital expenditure is estimated to be in the range of $125-$130 million.
For the first quarter of fiscal 2027, the company expects total sales between $574 million and $584 million, representing year-over-year growth of 14% to 16%. Consolidated same-store sales are projected to increase 2% to 4%, supported by retail same-store sales growth of 1% to 3% and stronger e-commerce same-store sales growth of 12% to 14%.
The company expects merchandise margin of $295-$300 million, or 51.5% of sales, and gross profit margins between $213 million and $218 million, or 37.1% and 37.3%. SG&A is projected to be between $147 million and $149 million, or 25.7%- 25.5% of sales, with operating income expected to be between $65 million and $69 million, or 11.4%-11.9% of sales, while earnings per share are expected to be in the range of $1.62-$1.71.
The company’s shares have plunged 10.6% in the past year compared with the industry’s decline of 8%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks have been discussed below:
Tapestry, Inc. (TPR - Free Report) provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia, and internationally. At present, TPR flaunts a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TPR’s current fiscal-year sales and earnings implies growth of 13.2% and 36.3%, respectively, from the year-ago figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Victoria’s Secret & Co. (VSCO - Free Report) operates as a specialty retailer of women's intimate apparel and other apparel and beauty products worldwide. At present, VSCO carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Victoria's Secret’s current fiscal-year sales and earnings indicates growth of 6.2% and 16.3%, respectively, from the year-ago figures. VSCO delivered a trailing four-quarter earnings surprise of 55.1%, on average.
Levi Strauss & Co. (LEVI - Free Report) designs, markets, and sells apparel and related accessories for men, women, and children in the United States and internationally. At present, LEVI carries a Zacks Rank of 2.
The Zacks Consensus Estimate for LEVI’s current fiscal-year sales and earnings implies growth of 5.2% and 11.9%, respectively, from the year-ago figures. LEVI has delivered a trailing four-quarter earnings surprise of 21.4%, on average.