Boot Barn kicks into higher gear in Q3

Boot Barn reported double-digit profit and revenue growth in the third quarter helped by its recent acquisition of Sheplers.



For the fiscal third quarter ended Dec. 26, net sales at Boot Barn increased 49% to approximately $194 million and the company opened five new stores and completed the rebranding of 19 Sheplers stores. Same-store sales declined 2%, but adjusted income from operations was $23.5 million, an increase of 32.5% compared to $17.7 million in the prior-year period. Adjusted earnings per share increased to 45 cents, from 40 cents in the same year-ago quarter.



“While our same store sales fell short of our original expectations, we maintained healthy merchandise margins without making meaningful changes to our pricing strategy in what was a very promotional holiday season," said Jim Conroy, CEO. "We also made considerable progress on our other initiatives during the third quarter. We completed the integration of the Sheplers business and further increased our market share by opening five new stores and growing e-commerce by double digits. We continued our initiative to expand merchandise margins by increasing the penetration of our private brands. We are pleased as both the Sheplers stores and e-commerce channels experienced growth in sales for the first five weeks of the fourth quarter, while the core Boot Barn business remained slightly positive. Overall, we remain confident in our ability to continue to execute on our long-term growth strategies, further expand our store footprint, and improve merchandise margins, while further solidifying our position as the largest omnichannel western and work wear retailer in the U.S.”



The company acquired 25 Sheplers stores, opened 18 Boot Barn stores, closed five Sheplers and one Boot Barn store, and ended the third quarter with 206 stores in 29 states. Boot Barn says it expects to open 22 new stores in 2016.



For the fiscal fourth quarter ending March 26, the company now expects:



• To open four new stores in the fourth quarter.

• Consolidated same store sales growth to be flat to slightly positive.

• Pro forma adjusted income from operations between $8.5 million and $9.4 million.

• Pro forma adjusted net income of $2.9 million to $3.5 million.

• Pro forma adjusted net income per diluted share of 11 cents to 13 cents.