The gross profit of the company was $152.9 million, or 35.9 per cent of net sales, compared to $133.9 million, or 35.8 per cent of net sales, in the prior-year period. Gross profits were up primarily due to an increase in sales and merchandise margin, partially offset by the occupancy costs of new stores, as per a press release by Boot Barn.
The increase in gross profit rate of 10 bps was primarily driven by a 70 basis-point increase in merchandise margin rate, partially offset by 60 basis points of deleverage in buying, occupancy and distribution centre costs.
Boot Barn Holdings, Inc reported net sales of $425.8 million in Q2 FY25, a 13.7 per cent increase YoY.
Its net income stood at $29.4 million. Gross profit rose to $152.9 million, driven by higher sales and merchandise margin.
Same-store sales climbed 4.9 per cent, with e-commerce up 10.1 per cent.
FY25 sales of the company are projected at $1.874-$1.907 billion, growing 12.4-14.4 per cent.
Same store sales of the company increased 4.9 per cent compared to the prior-year period, comprised of an increase of 4.3 per cent in retail store same store sales and an increase of 10.1 per cent in e-commerce same store sales.
Selling, general and administrative expenses stood at $112.9 million, or 26.5 per cent of net sales, compared to $95.3 million, or 25.5 per cent of net sales, in the prior-year period. Income from operations increased $1.4 million to $40.0 million, or 9.4 per cent of net sales, compared to $38.6 million, or 10.3 per cent of net sales, in the prior-year period, stated the press release.
Jim Conroy, president and chief executive officer (CEO) said, “Our fiscal second quarter saw broad-based growth in same store sales, the addition of 15 new stores and a healthy beat to guidance in earnings per diluted share. Our team’s excellent execution has driven improving trends across all channels, store geographies, and major merchandise classifications, positioning us well for the upcoming holiday season. As we manage through an orderly transition over the next month, I feel great about the condition of the business and am confident in the team’s ability, under John’s leadership, to execute on the four strategic initiatives and to drive future growth in sales and earnings.”
FY25 six months (H1) financial results
The net sales of the company increased 12.0 per cent to $849.2 million in H1 FY25 from $758.2 million in the prior-year period. Consolidated same store sales increased 3.1 per cent, with retail store same store sales increasing 2.5 per cent and e-commerce same store sales increasing 8.4 per cent.
Gross profit in this period was $309.6 million, or 36.5 per cent of net sales, compared to $275.9 million, or 36.4 per cent of net sales, in H1 FY25. Selling, general and administrative expenses were $219.4 million, or 25.8 per cent of net sales, compared to $191.1 million, or 25.2 per cent of net sales, in the prior-year period.
Income from operations increased $5.4 million to $90.2 million, or 10.6 per cent of net sales, compared to $84.8 million, or 11.2 per cent of net sales in H1 FY25. Net income was $68.3 million, or $2.21 per diluted share, compared to net income of $61.9 million, or $2.03 per diluted share, in the prior-year period.
FY25 financial outlook
For the fiscal year ending March 29, 2025, the company expects total sales to touch between $1.874 billion and $1.907 billion, representing growth of 12.4-14.4 per cent over the prior year. The gross profit of the company is expected to be between $696.9 million and $713.4 million, or approximately 37.2-37.4 per cent of sales. Selling, general and administrative expenses between $476.5 million and $480.4 million, or approximately 25.4-25.2 per cent of sales. Income from operations between $220.4 million and $233.0 million, or approximately 11.8-12.2 per cent of sales.
Q3 financial outlook
The company expects total sales of $582 million to $595 million for the third quarter (Q3) of FY25 ending December 28, 2024, representing growth of 11.8-14.3 per cent over the prior-year period. It is also expecting the same store sales growth of approximately 3.5-6.0 per cent, with retail store same store sales growth of approximately 3.0-5.0 per cent and e-commerce same store sales growth of approximately 7.5-10.0 per cent.
Income from operations is expected between $82.7 million and $87.3 million, or approximately 14.2-14.7 per cent of sales, and net income per diluted share is from $1.96 to $2.07, based on 31.0 million weighted average diluted shares outstanding.
Fibre2Fashion News Desk (SG)
