Boot Barn Q4 and full year numbers positive impacted by Sheplers

By

Obi Anyanwu

Published
May 19, 2016

Boot Barn Holdings, Inc. announced very strong results for its fourth quarter and fiscal year ended March 26, 2016. The company reported increases in sales numbers, but same store sales remained flat.

 
Fourth quarter net sales increased 45% to $149.5 million from $103.3 million due to the acquisition of Sheplers in 2015 and 22 new stores opening. The net sales increase was partially offset by a 1.2% decrease in consolidated same store sales.
 
Adjusted gross profit was $43.9 million or 29.4% of net sales, an increase of $9.9 million over last year, and adjusted income from operations was $7.7 million. Pro forma adjusted net income decreased to $2.5 million from $4.6 million.

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Jim Conroy, Chief Executive Officer, commented, “While the continued impact from low commodities prices on some of our key markets resulted in fourth quarter performance that was below our expectations, we made further progress towards our long-term targets. During the quarter we grew net sales, increased our higher-margin private brand penetration, and opened four new Boot Barn stores.
 
Net sales for the full year increased 41% to $569.0 million from $402.7 million also partially offset by a 0.1% decrease in consolidated same store sales. Adjusted gross profit increased $43.2 million to $178 million and adjusted income from operations was $42.7 million over $35.4 million from last year. The company acquired 25 Sheplers stores, opened 22 Boot Barn stores, and closed 6 Sheplers stores and 2 Boot Barn stores ending the period with 208 stores in 29 states.
 
Conroy added, “During the fiscal year we opened 22 new Boot Barn stores and completed the acquisition and integration of Sheplers, which has significantly elevated our e-commerce capabilities and expanded our market share in key markets. Overall, we solidified our position as the largest omni-channel western and work wear retailer in the U.S. While the current market environment remains challenging, and it is difficult to predict when external pressures to our business will subside, we believe we have appropriately positioned our merchandise offering, marketing strategy, and inventory levels to manage through this cycle and we continue to appropriately invest in our business for long-term growth and increased value for our shareholders.”
 
For fiscal year 2017, the company expects consolidated same store sales to be slightly negative to slightly positive, income from operations to range from $42.4 million to $46.8 million, and net income to be between $16.9 million and $19.6 million. Consolidated same stores sales are expected to be flat in the first quarter.