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

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Boot Barn Holdings, Inc. BOOT is scheduled to release third-quarter fiscal 2020 results on Feb 4, after the closing bell. This Irvine, CA-based lifestyle retailer delivered a positive earnings surprise of 20% in the preceding quarter. It has a trailing four-quarter positive earnings surprise of 22.7%, on average.

Preliminary Q3 Results

Last month, Boot Barn third-quarter preliminary results painted an encouraging picture. Strength in nearly all key product categories and geographic regions drove same-store sales performance. Robust growth in brand penetration and constant focus on full-price selling further boosted the Zacks Rank #2 (Buy) company’s merchandise margin.

Preliminary numbers showed a 6.7% rise in same-store sales. This includes retail store same-store sales growth of 5.7% and rise in e-commerce sales of about 11%. Concurrently, Boot Barn’s same-store sales rose about 6% for the combined November and December period.

Boot Barn Holdings, Inc. Price and EPS Surprise

 

Boot Barn Holdings, Inc. Price and EPS Surprise

Boot Barn Holdings, Inc. price-eps-surprise | Boot Barn Holdings, Inc. Quote

Moreover, net sales for the third quarter advanced 11.8% to $284 million Further, Boot Barn’s adjusted earnings per share grew 28.8% to 85 cents, thanks to enhanced sales and improved merchandise margins.

However, we note that the company has been witnessing higher selling, general and administrative costs for a while now. Rise in such expenses can be mainly attributed to higher spending to drive sales, and expenses for new and acquired stores. Management had earlier projected a marginal increase in occupancy costs.

Other Stocks to Consider

Chico's FAS, Inc. CHS has an impressive long-term expected earnings growth rate of 15% and currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Zumiez (ZUMZ - Free Report) , also a Zacks Rank #1 stock, has expected long-term earnings growth rate of 12%.

Genesco Inc. GCO has expected long-term earnings growth rate of 5% and a Zacks Rank of 1.

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