Boot Barn beat analyst expectations on Wednesday as the retailer reported a solid second quarter driven by new store expansion and positive retail store same store sales growth.
In the second quarter of 2023, the Irvine, Calif.-based footwear company reported net sales of $351.5 million, an increase of 12.4% over the prior year period, beating the street’s expectations of $343 million in the quarter.
Same store sales also increased in the quarter by 2.3% compared to last year, driven by an increase in retail store same store sales of 3.9% and a decrease in e-commerce same store sales of 7.0%.
According to the company’s earnings release, the increase in net sales was the result of the incremental sales from new stores opened over the past twelve months and the increase in consolidated same store sales, which saw an increase in average unit retail prices, driven in part by inflation.
Jim Conroy, president and CEO of Boot Barn, said in a statement that sales and earnings exceeded expectations in the quarter with an increase in exclusive brand penetration and better full-price selling leading to further merchandise margin expansion in Q2.
As for net income, Boot Barn reported earnings per diluted share of $1.06, or $32.1 million, down from $1.25 per diluted share, or $37.9 million, in the same period last year. While this number is down, analysts were predicting 0.90 per share in Q2.
Boot Barn’s stock was down 1.58% in post market trading on Wednesday after ending the day up 0.034% at $58.93 a share.
Looking ahead, the retailer has revised its guidance from the prior one issued in July. The company now expects total sales of $1.65 billion to $1.67 billion, representing growth of 10.9% to 12.2% over the prior year. This is down from July’s forecast of total sales between $1.68 billion and $1.70 billion, representing growth of 12.9% to 14.2% over the prior year.
“While current macroeconomic factors are creating general marketplace uncertainty, we feel good about our prospects for the upcoming holiday season, and remain very confident in our ability to deliver profitable growth and increased shareholder value over the long-term,” Conroy said.