Shares of Boot Barn Holdings Inc. jumped after market close on Tuesday following the release of a better-than-anticipated quarterly financial report.
For the three months ended June 27, the Irvine, Calif.-based chain announced a net loss of $0.5 million, or $0.02 per diluted share, compared with the prior year’s net income of $9.7 million, or $0.33 per diluted share. Meanwhile, its sales decreased 20.5% to $147.8 million.
Analysts, however, had forecasted a loss of 17 cents per share and revenues of $137.48 million. At 4:30 p.m. ET, the company’s stock was up nearly 8.5% to $22.00.
“I am proud of how our organization has navigated through the difficulties created by the COVID-19 pandemic,” CEO Jim Conroy said in a statement. “We quickly adapted our operations to meet the current needs of our customers in stores and online while taking a number of precautionary measures.”
Today, all of Boot Barn’s 264 outposts across the country have reopened to the public. (It introduced five new locations during the quarter.) According to the company, same-store sales declined 14.9% — with a 27.1% drop in retail store sales and a 51.9% surge in its e-commerce business.
“As our second fiscal quarter got underway, we continued to see a strong correlation between our customers’ shopping behavior and the number of positive COVID-19 test results in their communities,” Conroy shared. “While July got off to a slow start due to the resurgence in cases, same-store sales in our retail stores sequentially improved from mid-July through the first week of our fiscal August as sentiment improved.”
Due to ongoing uncertainties stemming from the health crisis, Boot Barn opted against providing an outlook for both the second-quarter and fiscal year. It ended Q1 with cash and equivalents of about $83.1 million.
“We have the leading brand in our industry, an extremely loyal customer base, expanded omnichannel capabilities and a strong cash position,” Conroy added. “This combination should enable us to weather these unprecedented times and emerge even stronger post COVID-19.”