Key Highlights

  • Net sales rose 15% to USD 581.8 million, with consolidated same store sales up 1.4% in the quarter.
  • Diluted EPS increased 26% to USD 1.73 from USD 1.37, helped by merchandise margin expansion of 190 basis points.
  • Boot Barn opened 19 stores, reaching 584 locations, and lifted its fiscal 2027 opening plan to 75 to 80.
  • The board authorized an additional USD 400 million of share repurchases, on top of the existing USD 200 million program.

Boot Barn Holdings, Inc. (NYSE:BOOT) reported fiscal second-quarter 2027 net sales of USD 581.8 million, up 15% from USD 505.4 million a year earlier and above a consensus estimate of USD 580.8 million. Diluted EPS was USD 1.73, above a consensus estimate of USD 1.64 and up from USD 1.37 in the prior-year quarter. The company said the result exceeded the high end of its own EPS guidance range by USD 0.08.

Net income was USD 52.5 million, compared with USD 42.2 million a year ago. Income from operations rose to USD 70.2 million, or 12.1% of sales, from USD 56.4 million, or 11.2%. Over the first half of the fiscal year, net sales reached USD 1.18 billion and net income totaled USD 122.6 million.

Margin Expansion and Store Growth

Gross profit grew to USD 216.5 million, a rate that was 80 basis points higher as merchandise margin expanded 190 basis points, offset by 110 basis points of deleverage in buying, occupancy and distribution center costs. Management attributed the merchandise margin gain to 130 basis points of lower freight expense, 40 basis points of tariff refunds and 20 basis points of product margin improvement. Selling, general and administrative expenses were USD 146.2 million, or 25.1% of sales, 10 basis points better than last year.

CEO John Hazen said the most recent group of 126 stores, opened over 18 months, is on course to average roughly USD 3.4 million in first-year sales, about USD 200 thousand above original projections. Work boots and work apparel sales trends improved for a sixth consecutive quarter, while e-commerce same store sales rose 5.2% against 14% growth a year earlier. Inventory increased 14% to USD 975 million.

Guidance and October Trends

Management said consolidated same store sales were slightly positive through the first four weeks of the third quarter, a slowdown that was linked to a prior-year comparison of 9% and unseasonably warm weather. At the high end of its fiscal 2027 range, the company guided to total sales of USD 2.6 billion, same store sales growth of 2% and diluted EPS of USD 9.00, up 22%. Third-quarter guidance at the high end calls for sales of USD 802 million, same store sales growth of 1% and diluted EPS of USD 3.19, versus USD 2.79 a year earlier.

Net capital expenditures are projected at USD 140 million for the year, and the effective tax rate is projected at 25.7% for the remainder of the year. The company ended the quarter with USD 97.4 million of cash, no borrowings on its USD 500 million revolving credit facility, and plans for a second distribution center in Kansas City targeted to be operational in calendar 2028.

Reference Points for the Next Report

Four items stand out. The first is the third-quarter guidance of USD 3.19 per share on sales up to USD 802 million, with fiscal December representing over half of the quarter's sales. The second is same store sales, which were 1.4% in the second quarter and slightly positive in October. The third is ladies' western boots, a drag on comps that the company is addressing through a refreshed assortment. The fourth is repurchase pace, with about USD 40 million of buybacks targeted for the third quarter and 876 thousand shares bought since the program began.