Boot Barn Holdings remains committed to store expansion despite a soft second-quarter.
The retailer of Western-styled and work-related apparel and footwear opened 10 stores during its second quarter, bringing its total store count to 371. Looking ahead, Boot Barn, Chain Store Age’s 2023 Breakout Retailers award winner, plans to open 52 locations in 2024. In May 2022, the company upped its long-term potential to approximately 900 stores.
“We continue to be quite pleased with the success of our store rollout, as the group of stores opened over the past two years is projected to pay back within 18 months, with each individual store expected to pay back in less than three years,” CEO Jim Conroy told analysts on the chain’s earnings call.
Boot Barn reported net income of $27.7 million, or $0.90 per share, for the quarter ended Sept. 30, compared to $32.1 million, or $1.06 per share in the prior-year period. Adjusted net income per share was $0.91.
Net sales increased 6.5% to $374.5 million. Same-store sales decreased 4.8% , with a 3.8% decrease in retail store same-store sales and an 11.7% decrease in e-commerce comparative sales.
“I am pleased with our second quarter results which included solid sales growth, merchandise margin expansion and earnings achievement which was at the high end of our guidance range,” stated Conroy in the company’s earnings release. “We opened 10 new stores in the quarter and continue to be encouraged by the new store performance across the country.”
Conroy said that the decline in same-store sales occurred amid a macro pull back in consumer demand.
“We believe that our inventory levels and expense structure are well positioned as we enter the holiday season,” he added.
Boot Barn, which has been focusing on its private brands, said that its exclusive brand penetration expanded more than 600 basis points during the quarter and its brands are “resonating well with the consumer.”