Boot Barn Holdings Inc. stock continued to climb Wednesday after the firm posted double-digit revenue and profit growth in Q3, boosted by its recent acquisition of Western-lifestyle company Sheplers Inc.
At press time, Boot Barn’s share price had advanced nearly 30 percent, to $7.17.
In Q3, the company said net sales increased 49 percent, to $193.8 million, from $130.5 million in the comparable quarter. Analysts had predicted revenues of around $192 million.
Much of its third-quarter growth, the company said, was due to contributions from Sheplers and 22 new stores opened between the beginning of the fourth quarter of fiscal 2015 and the end of the third quarter of fiscal 2016.
Adjusted income from operations was $23.5 million, an increase of 32.5 percent compared to $17.7 million in the prior-year period. Adjusted earnings per share increased to 45 cents, from 40 cents in the same year-ago quarter. It also beat analysts’ bets for EPS of 44 cents.
The company’s same-store sales, however, declined 2 percent in the quarter.
“While our same store sales fell short of our original expectations, we maintained healthy merchandise margins without making meaningful changes to our pricing strategy in what was a very promotional holiday season,” Boot Barn CEO Jim Conroy said in a release. “We also made considerable progress on our other initiatives during the third quarter. We completed the integration of the Sheplers business and further increased our market share by opening five new stores and growing e-commerce by double digits. We continued our initiative to expand merchandise margins by increasing the penetration of our private brands.”
Conroy added, “We are pleased as both the Sheplers stores and e-commerce channels experienced growth in sales for the first five weeks of the fourth quarter, while the core Boot Barn business remained slightly positive. Overall, we remain confident in our ability to continue to execute on our long-term growth strategies, further expand our store footprint, and improve merchandise margins, while further solidifying our position as the largest omni-channel western and work wear retailer in the U.S.”