Latest news with #JohnHazen
Yahoo
4 days ago
- Business
- Yahoo
BOOT Q1 Earnings Call: Revenue Miss and Margin Expansion Amid Tariff Uncertainty
Clothing and footwear retailer Boot Barn (NYSE:BOOT) fell short of the market's revenue expectations in Q1 CY2025, but sales rose 16.8% year on year to $453.7 million. Its GAAP profit of $1.22 per share increased from $0.96 in the same quarter last year. Is now the time to buy BOOT? Find out in our full research report (it's free). Revenue: $453.7 million (16.8% year-on-year growth) Revenue Guidance for Q2 CY2025 is $487 million at the midpoint, roughly in line with what analysts were expecting EPS (GAAP) guidance for the upcoming financial year 2026 is $5.95 at the midpoint, missing analyst estimates by 4.7% Operating Margin: 11%, up from 9.8% in the same quarter last year Locations: 459 at quarter end, up from 400 in the same quarter last year Same-Store Sales rose 6% year on year (-5.9% in the same quarter last year) Market Capitalization: $4.94 billion Boot Barn's first quarter performance was shaped by broad-based sales growth across both its physical stores and e-commerce channels, with management highlighting a 6% increase in same-store sales. CEO John Hazen attributed the quarter's results to 'increased transactions and full price selling,' supported by strong performance in categories like denim and women's western boots. Merchandise margin expanded due to supply chain efficiencies, better buying economies of scale, and growth in exclusive brand penetration. Hazen emphasized that the company's customer loyalty database continued to expand, reaching 9.6 million active members, which has helped tailor merchandise and marketing strategies. The company also noted that its ongoing store expansion into new and legacy markets contributed to increased brand awareness and incremental online demand, particularly in regions such as New York and Alaska. Looking forward, Boot Barn's guidance reflects caution around the impact of tariffs on both pricing and consumer demand in the coming quarters. Management stated that while same-store sales trends have been strong in the early part of the year, they expect momentum to moderate as price increases tied to tariffs take effect. CFO Jim Watkins noted, 'Our goal is to maintain merchandise margin rate, but we may give up some margin in order to maintain or gain market share.' The company's outlook includes a range of potential outcomes, reflecting the fluid situation with tariffs, anticipated mid-single-digit price increases from vendors, and possible consumer demand softness. Boot Barn plans to leverage its diversified sourcing strategy and ongoing exclusive brand development to help mitigate tariff-related headwinds, while continuing disciplined investment in new store openings and the in-store customer experience. Management attributed the quarter's sales and margin growth to robust store expansion, exclusive brand penetration, and supply chain efficiencies. However, they flagged the evolving tariff landscape and vendor price increases as emerging pressures that could influence demand and profitability. Exclusive brand penetration gains: Boot Barn increased exclusive brand sales to 38.6% of revenue, with management crediting this strategy for over one-third of merchandise margin growth. CEO John Hazen said this focus 'balanced expanding exclusive brands while driving growth within our third-party partners.' Store network expansion: The company opened 60 new stores over the year, extending its reach into four new states and ending the quarter with 459 locations. New stores contributed directly to revenue growth and were cited as a driver of both in-store and online sales gains. E-commerce and omnichannel growth: E-commerce same-store sales grew 9.8%, with accounting for about 75% of online sales and performing at low double-digit growth. Management noted that opening physical stores in new markets led to immediate online demand increases in those regions. Supply chain and inventory management: CFO Jim Watkins attributed improved merchandise margin to supply chain efficiencies, lower inventory shrink, and proactive inventory purchases ahead of anticipated tariffs. The company accelerated receipts to mitigate tariff exposure and diversified sourcing, reducing exclusive brand production in China from 24% to an expected 12%. Category performance variation: While most categories saw growth, denim and women's western boots led with mid-teen gains, and work boots remained a soft spot with low-single-digit declines. Hazen said renewed marketing focus will target work boot sales in the coming quarters. Management expects future results to be shaped by tariff-related cost pressures, pricing strategies, and continued investment in exclusive brand and store growth. Tariff impact and mitigation: Boot Barn anticipates $8 million in incremental tariff costs in the year, primarily affecting the second half. The company is responding by shifting sourcing away from China, raising select retail prices, and balancing margin preservation with the goal of retaining market share. Management cautioned that consumer demand may soften as price increases are implemented. Exclusive brand and pricing strategy: The company plans to hold or selectively raise prices on exclusive brand products, especially where psychological price points are at risk. Hazen explained that pricing decisions are made style-by-style to maximize competitiveness, with potential for exclusive brand penetration to rise if third-party prices increase more sharply. Continued store expansion: Boot Barn aims to open 65–70 new stores in the coming year, spanning both new and legacy markets. Management believes this expansion will support incremental sales, improve fixed-cost leverage, and enhance omnichannel performance as new stores typically drive a 'halo effect' on regional online sales. In the coming quarters, the StockStory team will focus on (1) how effectively Boot Barn navigates tariff-driven cost pressures through sourcing and pricing actions, (2) the pace and profitability of new store openings across diverse markets, and (3) the trajectory of exclusive brand penetration, especially as consumer demand responds to higher price points. Sustained merchandise margin and the ability to drive category growth, particularly in work boots and apparel, will also be key indicators of execution. Boot Barn currently trades at a forward P/E ratio of 26×. In the wake of earnings, is it a buy or sell? See for yourself in our full research report (it's free). Donald Trump's victory in the 2024 U.S. Presidential Election sent major indices to all-time highs, but stocks have retraced as investors debate the health of the economy and the potential impact of tariffs. While this leaves much uncertainty around 2025, a few companies are poised for long-term gains regardless of the political or macroeconomic climate, like our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-05-2025
- Business
- Yahoo
Why Boot Barn Rocketed Higher This Week
Boot Barn held its fiscal fourth-quarter earnings release on Wednesday. While overall headline numbers "missed" expectations, management's guidance for fiscal 2026 was better than feared. Boot Barn remains one of the best stories in apparel retail, but its stock is no longer cheap. 10 stocks we like better than Boot Barn › Shares of Western-style retailer Boot Barn (NYSE: BOOT) rocketed 34% higher this week through 2 p.m. ET Friday, according to data from S&P Global Market Intelligence. Boot Barn not only got a lift from the relaxation of tariffs on Chinese-imported goods announced Monday, but also held its fiscal fourth-quarter earnings release and call on Wednesday. While reported results actually missed expectations, Boot Barn's forward guidance for the year ahead and its encouraging commentary on tariff mitigation led to a massive recovery, following a three-month sell-off. For the quarter ended March 29, Boot Barn grew revenue 16.8% to $453.7 million on the back of 6% same-store sales growth. Earnings per share of $1.22 grew 27%, showing nice operating leverage. While those numbers seem really strong, especially in the apparel space, they actually fell short of analyst expectations. Likely, analysts had anticipated consumers rushing to buy boots and Western shirts to get ahead of higher tariffs. However, management's forecast for the upcoming fiscal year appeared to encourage analysts and investors alike. CEO John Hazen guided for 65 to 70 new store openings, which would be above last year's 60 store openings and increase Boot Barn's store count by just under 15%. Hazen also stated he sees the opportunity for the company to double its store count over just the next "several years." While management forecast just flat overall same-store sales at the midpoint for the year ahead, that was likely better than anticipated, given the low consumer confidence readings and fears of a tariff-induced recession. Moreover, Hazen said the company would be able to halve its exposure to China in the upcoming fiscal year, with the 24% of exclusive brands sourced from China in fiscal 2025 falling to just 12% in 2026, while exiting the year at an even lower rate. While the Trump administration and China agreed to roll back their retaliatory tariff rates for the next three months earlier this week on Monday, the tariff on Chinese-imported goods will still be 30%, down from 145%. So, the mitigation of exposure to China may have also helped sentiment. Even after Boot Barn's rally, it's still about 12% below its all-time highs set back in January. So does that still make the stock a buy? Given its solid performance, fashionable niche, and growth outlook, the company remains one of the best stories in retail. That being said, shares also come at a price, trading around 26.5 times the midpoint of this year's earnings guidance. That's pretty high for a fashion-oriented apparel retailer in an uncertain economic environment. As of now, I'd say the opportunity for big gains in Boot Barn may have passed. However, it's a high-quality name investors should monitor in case the stock dips again. Before you buy stock in Boot Barn, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Boot Barn wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,275!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $826,385!* Now, it's worth noting Stock Advisor's total average return is 967% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool recommends Boot Barn. The Motley Fool has a disclosure policy. Why Boot Barn Rocketed Higher This Week was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fibre2Fashion
15-05-2025
- Business
- Fibre2Fashion
US' Boot Barn delivers strong FY25, plans up to 70 new stores in FY26
American retailer of western wear Boot Barn Holdings Inc has reported net sales of $1.91 billion in full fiscal 2025 (FY25) ended March 29, up 14.6 per cent year-over-year (YoY). The same store sales rose 5.5 per cent YoY, with retail store same store sales up 5 per cent and e-commerce same store sales climbing 9.7 per cent. The net income grew to $180.9 million, or $5.88 per diluted share, The company also expanded its retail footprint by opening 60 new stores, bringing the total number of stores to 459 by the end of FY25. Boot Barn Holdings has reported net sales of $1.91 billion in FY25, up 14.6 per cent YoY, with net income rising to $180.9 million. Same store sales grew 5.5 per cent, and 60 new stores were added. For FY26, it expects up to $2.15 billion in sales, with up to 70 new stores. Q1 FY26 sales are projected to grow 14â€'16 per cent YoY, with strong margins and earnings per share. Income from operations increased to $239.4 million, or 12.5 per cent of net sales, and net income stood at $180.9 million, or $5.88 per diluted share. The gross profit increased to $717.0 million, or 37.5 per cent of net sales due to a rise in sales and merchandise margin, partially offset by the occupancy costs of new stores. The 70 basis-point (bps) increase in gross profit rate was driven primarily by a 130 bps increase in merchandise margin rate partially offset by 60 bps of deleverage in buying, occupancy and distribution centre costs, Boot Barn Holdings said in a press statement. The company stated that the increase in merchandise margin rate was primarily the result of supply chain efficiencies, lower shrink expense, better buying economies of scale, and growth in exclusive brand penetration. The deleverage in buying, occupancy and distribution centre costs was driven by the occupancy costs of new stores. Meanwhile, in the fourth quarter (Q4) of FY25, the company's net sales rose 16.8 per cent YoY to $453.7 million and net income stood at $37.5 million, or $1.22 per diluted share. 'Our team delivered a solid finish to fiscal year 2025 highlighted by 15 per cent annual total sales growth and 23% growth in earnings per diluted share, underscoring the ongoing resilience of our core consumer despite broader market uncertainties,' said John Hazen, Chief Executive Officer (CEO) at Boot Barn Holdings. 'The continued strength across major merchandise categories, channels, and geographies reaffirms the broad appeal of our brand and the effectiveness of our strategic initiatives.' For fiscal 2026 (FY26), Boot Barn anticipates opening 65 to 70 new stores and projects total sales between $2.07 billion and $2.15 billion, reflecting an 8 to 13 per cent YoY increase. Same store sales are expected to range from a decline of 2 per cent to growth of 2 per cent, with retail store same store sales projected between a 2.5 per cent decline and 1.5 per cent growth, and e-commerce same store sales anticipated to rise between 1 and 7.5 per cent. Net income for FY26 is forecast at $169 million to $197 million, or $5.5 to $6.4 per diluted share and capital expenditures between $115 million and $120 million. For Q1 FY26 ending June 28, 2025, total sales are expected between $483 million and $491 million, reflecting 14-16 per cent YoY growth. Same store sales, including retail and e-commerce, are expected to grow 4-6 per cent. Meanwhile, merchandise margin is projected at $250-254 million (51.7 per cent of sales) in Q1 FY26, and gross profit is expected between $183 million and $188 million (37.9–38.2 per cent of sales). Net income per diluted share is expected to be in the range of $1.44-$1.52, based on 30.9 million weighted average diluted shares outstanding. 'As we look ahead, we remain confident in our ability to navigate the current tariff environment through our diversified sourcing capabilities and established vendor partnerships. The fundamentals of our business remain strong, and we are well-positioned to continue generating value for our shareholders,' added Hazen. Fibre2Fashion News Desk (SG)
Yahoo
15-05-2025
- Business
- Yahoo
Why Boot Barn Stock Popped After Earnings
Boot Barn missed Wall Street estimates on sales. It missed on earnings, too. Investors are buying the stock hand over fist regardless. Why? Because even Boot Barn's misses reveal amazing growth. 10 stocks we like better than Boot Barn › Boot Barn (NYSE: BOOT) stock was trading up by 17.5% as of 10:37 a.m. ET Thursday, and it's pretty clear what powered that surge. In the fiscal 2025 fourth-quarter earnings report that it delivered on Wednesday evening, the retailer said it earned $1.22 per share on sales of $453.7 million. That came up short of Wall Street's forecasts for $1.25 per share in earnings and $458.4 million in sales, yet the news wasn't all bad. Boot Barn's revenues still grew nearly 17% year over year. Same-store sales rose by 6%; an expanded store count helped make up the rest of the growth. Its earnings growth of 27% was even better. For the full fiscal year, which ended March 29, sales grew by nearly 15%, same-store sales rose 5.5%, and net profits were up by 23% to $5.88 per share. CEO John Hazen hailed the results as "a solid finish to fiscal year 2025." Looking ahead, he reassured investors that "we remain confident in our ability to navigate the current tariff environment through our diversified sourcing capabilities and established vendor partnerships." Then he put his money where his mouth is, announcing a $200 million stock buyback authorization. Boot Barn plans to open 65 to 70 new stores in its fiscal 2026, which it expects will help it to grow sales by 8% to 13%, to a total of more than $2.1 billion (despite flattish same-store sales), and earn anywhere from $5.50 per share to $6.40 per share. Those numbers looked generally weaker than Wall Street forecasts; based on them, the stock on Thursday morning was trading as high as 28 times this fiscal year's expected earnings. Given that the retailer's sales and earnings are starting to plateau, though, it may be time to consider selling the stock after one last hurrah on Thursday. Before you buy stock in Boot Barn, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Boot Barn wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $620,719!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,511!* Now, it's worth noting Stock Advisor's total average return is 962% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Boot Barn. The Motley Fool has a disclosure policy. Why Boot Barn Stock Popped After Earnings was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
14-05-2025
- Business
- Yahoo
Boot Barn (NYSE:BOOT) Misses Q1 Revenue Estimates, But Stock Soars 10.4%
Clothing and footwear retailer Boot Barn (NYSE:BOOT) missed Wall Street's revenue expectations in Q1 CY2025, but sales rose 16.8% year on year to $453.7 million. On the other hand, the company expects next quarter's revenue to be around $487 million, close to analysts' estimates. Its GAAP profit of $1.22 per share was 1.6% below analysts' consensus estimates. Is now the time to buy Boot Barn? Find out in our full research report. Revenue: $453.7 million vs analyst estimates of $458 million (16.8% year-on-year growth, 0.9% miss) EPS (GAAP): $1.22 vs analyst expectations of $1.24 (1.6% miss) Adjusted EBITDA: $112.1 million vs analyst estimates of $68.58 million (24.7% margin, 63.5% beat) Management's revenue guidance for the upcoming financial year 2026 is $2.11 billion at the midpoint, missing analyst estimates by 2.8% and implying 10.4% growth (vs 14.4% in FY2025) EPS (GAAP) guidance for the upcoming financial year 2026 is $5.95 at the midpoint, missing analyst estimates by 4.3% Operating Margin: 11%, up from 9.8% in the same quarter last year Free Cash Flow was -$753,000 compared to -$31.86 million in the same quarter last year Locations: 459 at quarter end, up from 400 in the same quarter last year Same-Store Sales rose 6% year on year (-5.9% in the same quarter last year) Market Capitalization: $4.13 billion John Hazen, Chief Executive Officer, commented, 'Our team delivered a solid finish to fiscal year 2025 highlighted by 15% annual total sales growth and 23% growth in earnings per diluted share, underscoring the ongoing resilience of our core consumer despite broader market uncertainties. The continued strength across major merchandise categories, channels, and geographies reaffirms the broad appeal of our brand and the effectiveness of our strategic initiatives. As we look ahead, we remain confident in our ability to navigate the current tariff environment through our diversified sourcing capabilities and established vendor partnerships. The fundamentals of our business remain strong, and we are well-positioned to continue generating value for our shareholders.' With a strong store presence in Texas, California, Florida, and Oklahoma, Boot Barn (NYSE:BOOT) is a western-inspired apparel and footwear retailer. Examining a company's long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. With $1.91 billion in revenue over the past 12 months, Boot Barn is a small retailer, which sometimes brings disadvantages compared to larger competitors benefiting from economies of scale and negotiating leverage with suppliers. On the bright side, it can grow faster because it has more white space to build new stores. As you can see below, Boot Barn grew its sales at an impressive 16.2% compounded annual growth rate over the last six years (we compare to 2019 to normalize for COVID-19 impacts) as it opened new stores and expanded its reach. This quarter, Boot Barn's revenue grew by 16.8% year on year to $453.7 million but fell short of Wall Street's estimates. Company management is currently guiding for a 15% year-on-year increase in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 13.9% over the next 12 months, a slight deceleration versus the last six years. Still, this projection is noteworthy and indicates the market is forecasting success for its products. Unless you've been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories. The number of stores a retailer operates is a critical driver of how quickly company-level sales can grow. Boot Barn operated 459 locations in the latest quarter. It has opened new stores at a rapid clip over the last two years, averaging 15% annual growth, much faster than the broader consumer retail sector. This gives it a chance to scale into a mid-sized business over time. When a retailer opens new stores, it usually means it's investing for growth because demand is greater than supply, especially in areas where consumers may not have a store within reasonable driving distance. A company's store base only paints one part of the picture. When demand is high, it makes sense to open more. But when demand is low, it's prudent to close some locations and use the money in other ways. Same-store sales gives us insight into this topic because it measures organic growth for a retailer's e-commerce platform and brick-and-mortar shops that have existed for at least a year. Boot Barn's demand within its existing locations has barely increased over the last two years as its same-store sales were flat. Boot Barn should consider improving its foot traffic and efficiency before expanding its store base. In the latest quarter, Boot Barn's same-store sales rose 6% year on year. This growth was a well-appreciated turnaround from its historical levels, showing the business is regaining momentum. We were impressed by how significantly Boot Barn blew past analysts' EBITDA expectations this quarter. On the other hand, its revenue and EPS fell short along with its full-year guidance for both metrics. Overall, this was a weaker quarter, but the stock traded up 11.2% to $148 immediately following the results due to the EBITDA beat. So should you invest in Boot Barn right now? We think that the latest quarter is just one piece of the longer-term business quality puzzle. Quality, when combined with valuation, can help determine if the stock is a buy. We cover that in our actionable full research report which you can read here, it's free.
