Riding High: Boot Barn Holdings

Shares of Boot Barn Holdings Inc. (BOOT) are well below their 52-week high of $17.26, but have gained more than 20% in the last three trading days alone.

Boot Barn is a lifestyle retailer of western and work-related footwear, apparel and accessories in the U.S.

Footwear accounts for over 51% of the Company’s sales; apparel makes up 32% while hats and other accessories contribute to the balance 17% of sales. The end users of its products are mostly men, say 60%, while women account for 26%.

Boot Barn, which had just 86 stores in 8 states in fiscal year 2012, now operates 222 stores in 31 states, offering an assortment of brands and styles. Wrangler, Ariat, Justin, Carhartt, Miss Me, Corral, Tony Lama, Dan Post, Timberland, Lucchese, Cody James, Shyanne, and Moonshine Spirit are some of the brands of boots, apparel and accessories offered by the Company.

The brick-and-mortar stores account for 82% of the retail chain’s overall sales while online accounts for 18%. In order to boost its online sales, Boot Barn is making an omnichannel push, which is called WHIP, short for We Have It, Promise. This initiative is all about equipping its stores with touch screen devices, thereby enabling customers to order merchandise from its e-commerce warehouse and have them delivered to their location if the products they are looking for while in store are out of stock.

Let’s take a look at this retailer’s financial performance over the past four years. Boot Barn’s fiscal year ends on the last Saturday of March unless April 1st is a Saturday.

Metrics2014201520162017
Net sales$346 Mln$403 Mln$569 Mln$630 Mln
Net income$5.7 Mln$13.7 Mln$9.9 Mln$14.2 Mln
EPS$0.28$0.54$0.37$0.53
Same Store Sales growth/(decline)6.7%7.3%(0.1%)0.3%

The term “same store sales” refers to net sales from stores that have been open at least 13 full fiscal months as of the end of the current reporting period. Increasing brand awareness, driving additional traffic to its stores and increasing the amount of merchandise purchased by customers while visiting stores to drive are some of the initiatives taken by the Company to drive its same store sales growth.

For the second quarter fiscal year 2018, ended September 30, 2017, net income increased to $1.1 million or $0.04 per share on net sales of $143.1 million. In the comparable year-ago quarter, net income was $0.5 million or $0.02 per share and net sales were $133.96 million.

Same store sales for the recent quarter increased 1.8%.

For the fiscal third quarter…

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