Boot Barn Raises Store Opening Plan To 75-80 And Adds $400 Million To Buyback Authorization
The western-wear retailer's quarterly EPS rose 26.3%, but its holiday-quarter outlook spans a 1.0% same-store sales decline to 1.0% growth.
Boot Barn, which sells western and work boots, clothing and accessories, said Wednesday its second-quarter net sales rose 15.1% to $581.8 million and diluted earnings per share climbed 26.3% to $1.73. The board also authorized another $400 million of buybacks, and the company now plans to open 75 to 80 stores this fiscal year, up from 70.
Freight relief drove the margin
Net income was $52.5 million, against $42.2 million a year earlier, in the quarter ended September 26. Merchandise margin rose 190 basis points, including 130 from lower freight expense, 40 from tariff refunds and 20 from product margin expansion, the company reported.
An estimated $0.05 of per-share earnings came from tariff refunds. Without them, earnings per share rose 22.6%.
Same-store sales rose only 1.4%, with retail stores up 1.0% and e-commerce up 5.2%. Growth came mainly from new stores: the company opened 19 in the quarter and ended with 584.
A soft holiday-quarter forecast
For the third quarter, the company expects sales of $785 million to $802 million and earnings per share of $3.03 to $3.19. It guides same-store sales from a 1.0% decline to 1.0% growth, and about 20 new stores are planned.
Preliminary results for the five weeks ended October 24 showed total net sales up 13.9% and same-store sales up 0.4%.
For the full year ending March 27, 2027, the company now expects sales of $2.565 billion to $2.593 billion and earnings per share of $8.72 to $9.00, including an estimated $0.45 tariff-refund benefit. Same-store sales growth is guided at 0.8% to 2.0%.
$468 million left to spend on buybacks
The board approved the extra $400 million on October 21, leaving about $468 million available under the program. In the second quarter the company bought back 240,937 shares for $35 million.
CEO John Hazen said new stores "continue to exceed expectations," with recent openings generating sales above original projections. Cash stood at $97 million, with nothing drawn on the $500 million revolving credit facility.
The company held its earnings call at 4:30 p.m. ET Wednesday, and the stock was up 1.44% in the session.
