Shares of Boot Barn Holdings Inc. were down 15% to $6.30 during Friday morning trading, after the company reported revenue and adjusted profits for the April quarter that missed the Wall Street expectations.
The Irvine-based western and work wear retailer posted a 9.1% increase in sales to $163 million for the fourth quarter of its fiscal 2017 that ended April 1. Analysts had anticipated $164.7 million in revenue.
Boot Barn’s adjusted profit was $3.3 million, or 12 cents per diluted share, up 32% compared to adjusted net income of $2.5 million, or 9 cents per diluted share during a year-ago period. Wall Street was looking for profits of about 18 cents per share.
The retailer opened two locations and closed one, for a total of 219 stores in 31 states. It plans to boost its same-store sales—which were flat during the last quarter—via partnerships “with small and large businesses, municipalities and others focused on meeting the workwear needs of their employees.”
It also said it would increase its focus on Latino consumers by “hiring more bilingual store associates, creating signage in Spanish and tailoring our product assortment and sizing.”
Boot Barn’s full-year sales increased 10.7% to $629.8 million. Its adjusted earnings were $14.9 million, or 55 cents per diluted share, a 20% dip compared to $18.7 million, or 69 cents per diluted share it posted in fiscal 2016.
“Fiscal 2017 was a challenging year, as the impact from low commodities prices in some of our key markets coupled with a general softness in the overall retail environment pressured sales and earnings growth,” Chief Executive Jim Conroy said during an earnings call Thursday.
Conroy also said Boot Barn in February purchased “certain assets” of e-commerce retailer, Country Outfitter, including the countryoutfitter.com domain, an “extensive customer list” and all of its social media assets, for about $1.8 million.
Boot Barn’s market value is about $167 million, down from $287 million in January quarter.
