Specialty retailer Boot Barn Holdings Inc. is kicking up its heels to the tune of double-digit growth.
The Irvine-based work and Western footwear, apparel and accessories company posted sales of $700.5 million in the 12 months ending June 30, up 16% year-over-year.
The performance ranks it eighth among large firms on the Business Journal’s list of fastest-growing public companies based in Orange County (see special report, page 19, lists beginning page 25).
It’s the only apparel-related company to appear on this week’s listings.
Wall Street’s noticed; company shares have nearly tripled in the past year. Boot Barn’s market cap is about $785 million.
Its share price has a history of following the price of oil, as a large portion of its business is tied to states in the oil industry, company executives note.
Oil prices are up roughly 50% year-over-year.
Jobs Up
The sales gains are having an impact on the company’s local operations, which are based in a nearly 85,000-square-foot “store support center” on Barranca Parkway near Orange County Great Park.
Boot Barn (NYSE: BOOT) grew its local presence over the past year to 243 employees, up 36%. Companywide staffing grew from 3,131 to 3,753.
Chief Executive James Conroy thinks the retailer will continue its upward trajectory for years to come, thanks to his plan to double the retailer’s footprint to 500 stores through store openings and acquisitions.
A special focus is also directed toward its e-commerce business, such as streamlining back-of-house operations and pushing higher-margin products, including private-label brands, which represent about 15% of sales.
“We have a first class e-commerce business that represents approximately 17% of our annual sales and we expect to grow our e-commerce sales double digits annually,” Conroy said in an emailed statement. “We ultimately want to be where the customer wants to shop, whether that is online or in stores, and we believe we have tremendous growth opportunities in both channels.”
The company reported second-quarter earnings for the 2019 fiscal year of 16 cents a share last week, beating analyst estimates of 9 cents. Revenue of $168.1 million also beat the $161.4 million analyst consensus.
Boot Barn earned $4.5 million in quarterly net income, up from $1.1 million year-over-year. Same-store sales were up 11.3%.
Boot Barn has had positive same-store sales over the past two quarters, and Conroy said during an August earnings call that he “would ascribe some of that to a healthier oil and gas environment, and in terms of product categories, we have seen a nice pickup in work boots, specifically work boots used in [oilfields] as well as [our] flame-resistant apparel, which is often used in the oilfield, as well.”
Two Step
Boot Barn operates 232 stores in 31 states. It plans to grow the count by about 10% annually.
In April, it acquired Texas-based retailer Lone Star Western and Casual LLC, which has three stores, for $4.4 million, according to regulatory filings. It purchased longtime Tulsa, Okla. two-store Western retailer Drysdales Inc. in July for an undisclosed sum.
It made improvements this year to its in-store visual merchandising, from adding new signage to displaying products based on style as opposed to brand.
Adding to its product mix, Boot Barn held a national rollout last month of its new Idyllwind line of shoes, clothes and accessories in a partnership with country music star Miranda Lambert.
The women’s apparel, accessories and boot line is inspired by vintage and retro looks with a focus on comfort and fit.
“We will be supporting Idyllwind with a comprehensive launch plan that includes a broad reaching marketing campaign, new in-store pictures and signage and an employee ambassador program,” Conroy said in a statement. “Our marketing plan is intended to attract new customers to the Boot Barn experience while also offering something new and exciting to our current customer base.”
Idyllwind is also available online—another channel where the retailer hopes to boost sales. It introduced new portals on its website, Wonderwest and Shyanne, over the summer aimed at the fashion-forward consumer, with trendy pieces such as floral-print dresses, sequin tops and laser-cutout cowboy boots.
“While these sites are lower in volume, they provide us platforms for testing and learning,” Conroy said during last week’s earnings call. “For example, we’re experimenting with new customer acquisition techniques, web push notifications and cart abandonment tools.”
He added that the retailer expects to roll out the features from those microsites on its main website following the initial testing phase.
Boot Barn centralized its e-commerce team this year into its store-support center in Irvine, allowing both sides to work more efficiently. A new warehouse management system and equipment were also put in place several months ago, all to help it meet demand in the holiday shopping season.
Along with its Irvine operations, the company has a nearly 200,000-square-foot facility in Fontana to support private-brand initiatives, bulk purchasing programs, event sales, and store openings.
