Boot Barn backtracks on Q3 expectations

Warm weather, as well as layoffs in the oil and gas industry hindered sales Boot Barn during the holiday quarter.



Boot Barn announced preliminary results for the third quarter ended Dec. 26 as follows:



• Preliminary net sales increased 49% to approximately $194 million;



• Opened 5 new stores and completed the rebranding of 19 Sheplers stores;



• Preliminary same-store sales (which include e-commerce and Sheplers sales) declined approximately 2%, with Boot Barn and Sheplers performing similarly. This compares with previous third quarter guidance of positive low single digits;



• Preliminary adjusted net income per diluted share between $0.43 to $0.44, compared to previous guidance of $0.47 to $0.49.



“During the third quarter we faced increasing headwinds due to the softening of local economies dependent on oil and other commodities, and a challenging retail environment due to unseasonably warm weather in many of our markets," said Jim Conroy, CEO. "We also continued to integrate the newly acquired Sheplers business, which is now largely complete, and we feel very good about the acquisition. The Sheplers e-commerce business achieved solid growth for the quarter. The 19 rebranded stores were negative for the quarter as a result of disruption from remodeling construction, and cycling outsized promotional activity in the prior year period. These stores have turned positive post-Christmas, albeit later than we had anticipated. On a consolidated basis, our same store sales declined in October and November before improving to nearly flat in December. Fortunately, we managed our merchandise levels prudently, resulting in a healthy and clean inventory position as we entered the fourth quarter, which is off to a strong start in the first two weeks.”



Conroy continued: “We are pleased with the double digit growth we were able to achieve in our combined e-commerce channel. We also feel good about the overall Boot Barn concept as we have continued to experience strong same-store sales growth in many of our core markets without significant exposure to commodity prices, including California, Arizona and Nevada. Finally, we have continued to execute on our growth strategies, further expanding our store footprint, improving the merchandise margin at both Boot Barn and Sheplers stores and increasing our private brand penetration, while further solidifying our position as the largest omnichannel western and work wear retailer in the U.S.”