Boot Barn beat analyst expectations on Wednesday because the retailer reported a strong second quarter pushed by new retailer enlargement and constructive retail retailer identical retailer gross sales development.
Within the second quarter of 2023, the Irvine, Calif.-based footwear firm reported internet gross sales of $351.5 million, a rise of 12.4% over the prior 12 months interval, beating the road’s expectations of $343 million within the quarter.
Identical retailer gross sales additionally elevated within the quarter by 2.3% in comparison with final 12 months, pushed by a rise in retail retailer identical retailer gross sales of three.9% and a lower in e-commerce identical retailer gross sales of seven.0%.
In keeping with the corporate’s earnings launch, the rise in internet gross sales was the results of the incremental gross sales from new shops opened over the previous twelve months and the rise in consolidated identical retailer gross sales, which noticed a rise in common unit retail costs, pushed partly by inflation.
Jim Conroy, president and CEO of Boot Barn, stated in a press release that gross sales and earnings exceeded expectations within the quarter with a rise in unique model penetration and higher full-price promoting resulting in additional merchandise margin enlargement in Q2.
As for internet revenue, 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 identical interval final 12 months. Whereas this quantity is down, analysts had been predicting 0.90 per share in Q2.
Boot Barn’s inventory was down 1.58% in publish market buying and selling on Wednesday after ending the day up 0.034% at $58.93 a share.
Wanting forward, the retailer has revised its steering from the prior one issued in July. The corporate now expects complete gross sales of $1.65 billion to $1.67 billion, representing development of 10.9% to 12.2% over the prior 12 months. That is down from July’s forecast of complete gross sales between $1.68 billion and $1.70 billion, representing development of 12.9% to 14.2% over the prior 12 months.
“Whereas present macroeconomic elements are creating common market uncertainty, we be ok with our prospects for the upcoming vacation season, and stay very assured in our means to ship worthwhile development and elevated shareholder worth over the long-term,” Conroy stated.