Boot Barn misses Q4 earnings expectations, yearly sales up 10%
Boot Barn on Thursday reported another quarter of sales growth to close a fiscal year of sales increases and net income increases.
Fiscal year net sales increased 10.7% to $629.8 million and consolidated same store sales increased 0.3%. Net income on a GAAP basis was $14.2 million, or $0.53 per diluted share, compared to $9.9 million, or $0.37 per diluted share in the previous year, but adjusted net income fell to $14.9 million, or $0.55 per diluted share, from $18.7 million, or $0.69 per diluted share, in the prior fiscal year.
In addition, gross profit was $189.9 million, or 30.2% of net sales, and income from operations on a GAAP basis was $37.8 million compared to $30.2 million in the previous year. Adjusted income from operations decreased 8.6% to $39.0 million from $42.7 million.
In the fourth quarter, the footwear retailer posted slightly negative consolidated same store sales for the quarter and earnings fell short of expectations. Consolidated same store fell 0.9% on a 9.1% increase in net sales to $163.0 million. Sales at Sheplers.com also fell in February and March due to a disruption from the conversion to a new e-commerce platform.
“While we reported slightly negative consolidated same store sales for the quarter, we are pleased that comparable sales in our physical stores improved on a sequential basis, and we were able to achieve 30 basis points of improvement in our core merchandise margin,” said CEO Jim Conroy.
“Looking ahead, we are excited to announce that we have further strengthened our position as the leading omni-channel western and work wear retailer in the U.S. with the purchase of certain assets of countryoutfitter.com, a large pure-play e-commerce retailer targeting a younger, female country customer. While more difficult than anticipated, we have also completed the transition of sheplers.com to our new e-commerce platform, which now includes the newly acquired countryoutfitter.com.”
Conroy added that same store sales at its physical stores are improving and are positive fiscal year-to-date.
For fiscal 2018, Boot Barn expects flat to slightly positive consolidated same store sales growth, net income to be between $14.0 million and $15.4 million, and net income per diluted share to be in range of $0.52 to $0.57. Boot Barn also expects its first quarter consolidated same store sales to be flat.
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