Boot Barn Q4 sales climb 12.1% to $170.8 million

The net sales of Boot Barn, a leading lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children, has increased to $170.8 million in the fourth quarter of 2018, driven by a 12.1 per cent increase in same store sales, with double-digit same store sales growth in both retail stores and online.

Gross profit was $52.9 million, or 31.0 per cent of net sales, in the fourth quarter of fiscal year 2018, compared to gross profit of $49.3 million, or 30.3 per cent of net sales, in the prior-year period. Gross profit increased primarily due to increased sales and an increase in merchandise margin rate.

Income from operations increased 39.9 per cent, to $11.3 million, or 6.6 per cent of net sales, in the fourth quarter of fiscal year 2018, compared to $8.1 million, or 4.9 per cent of net sales, in the prior-year period. Excluding the impact of the store impairment charges in the prior-year period, adjusted income from operations was $9.2 million, or 5.7 per cent of net sales, in the fourth quarter of fiscal year 2017.

Net income was $6.9 million, or $0.24 per diluted share, in the fourth quarter of fiscal year 2018, compared to $2.6 million, or $0.10 per diluted share, in the prior-year period. Excluding the impact of the store impairment charges, adjusted net income was $3.3 million, or $0.12 per diluted share, in the fourth quarter of fiscal year 2017. Net income per diluted share in the fourth quarter of fiscal 2018 includes approximately $0.06 per share of tax benefit related to stock option exercises and $0.02 per share related to improved tax rate, partially offset by $0.01 per share of secondary offering costs.

"Our investments in merchandising, marketing and omni-channel fuelled double-digit gains in retail comparable sales and helped return our e-commerce business to double-digit growth as well. Importantly, we held true to our full-price selling model, which combined with a meaningful increase in our exclusive brand penetration, yielded a 90 basis point improvement in merchandise margin. Our strong sales and margin performance enabled us to exceed our earnings guidance for the quarter," Jim Conroy, chief executive officer, said.

"I am equally excited about the business in April and May as our double-digit same store sales growth has continued. We are looking forward to fiscal 2019 and the opportunities we have to drive profitable growth, re-accelerate store expansion, build out our multi-brand e-commerce strategy, and further develop our exclusive brands," concluded Conroy.