Shares of Boot Barn Holdings Inc. were up 29% in recent trading to a market cap of $188 million on the strength of its quarterly report issued yesterday. The Irvine-based western and work wear retailer beat Wall Street expectations on earnings and revenue.
Boot Barn’s sales totaled $193.8 million in the third quarter of fiscal 2016, up 49% over $130.5 million a year earlier. Analysts expected revenue of $192.13 million.
Its earnings added up to $9.9 million, or 37 cents per diluted share, up from the $8.8 million, or 36 cents per diluted share it posted in the third quarter of fiscal 2015. Analysts anticipated earnings of 44 cents per diluted share, which nearly matched the company’s “pro forma” net income of 45 cents per share, adjusted for one-time costs.
Boot Barn’s same-store sales, which include e-commerce and Sheplers sales, declined 2%. The company opened five stores, ending the quarter with 206 in 29 states.
“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,” Chief Executive Jim Conroy said in a statement.
Shepler said the company “also … 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.”
The company said it plans to open four stores in the fourth quarter, which ends March 26, and that it projects its same-store sales to remain “flat to slightly positive.”
