Boot Barn Downgrades 2024 Outlook After Sales Miss in Q3

Shares for Boot Barn were down more than 5 percent after the bell on Wednesday as the footwear retailer downgraded its outlook for fiscal year 2024.

The Irvine, Calif-based company reported that net sales in the third quarter were $520.4 million, up 1.1 percent from the prior year but short of the company’s previously outlined guidance of $535 million. Sales were also slightly short of the $521.36 million estimate from analysts surveyed by Yahoo Finance. Same store sales in Q3 were down 9.7 percent, which was also weaker than the 8 percent decline expected from Boot Barn management. Net income was $55.6 million, with $1.81 per diluted share, ahead of the $1.79 expected from Boot Barn and analysts.

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Boot Barn previously reported preliminary results for its third quarter the at ICR conference earlier this month.

Jim Conroy, president and chief executive officer of Boot Barn, said the company’s 49 new Boot Barn stores that opened over the last year helped offset the 9.7 percent same store sales decline in Q3 and drove top line growth in Q3. Boot Barn opened 11 new stores in Q3, for a total of 382 stores.

“Excluding three quarters in calendar 2020 that were impacted by the pandemic, the third quarter marks our 38th consecutive quarter of year-over-year sales growth since our IPO in 2014, nearly ten years ago,” Conroy said in a statement. “These results underscore the strength of the Boot Barn business model and are a testament to solid execution across the organization.”

At the ICR conference, Conroy said Boot Barn plans to end fiscal 2024 with approximately 397 stores, with the potential to add an additional 500 locations in the coming years. By fiscal 2030, Boot Barn plans to have 900 stores that are expected to contribute approximately $1.5 billion in sales.

In light of its third quarter results, Boot Barn downgraded its outlook for fiscal year 2024 and now expects total sales between $1.65 billion and $1.66 billion, which would represent up to a 0.4 percent growth over the prior year. That’s down from the company’s prior guidance of $1.7 billion in sales for the year. Same store sales are expected to be down between 7 percent and 6.3 percent. Net income is expected to be between $142.8 million and $145.8 million, with net income per diluted share between $4.65 and $4.75, down from a prior expectation of $5. The company also expects to open 52 new stores in 2024.

For Q4, Boot Barn expects total sales between $376 million to $386 million, for a decline of between 11.7 percent and 9.3 percent. Net income per diluted share is expected to be in the range of 82 cents to 92 cents.

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