Boot Barn Q2 profits sink despite sales spike as costs surge

US company Boot Barn Holdings saw total net sales jump 6.5% however, the profits dwindled at the back of lower same stores sales across consolidated, retail and e-commerce arenas with reduced customer demand.

Profits for Boot Barn dwindled in Q2 2023 with a decrease in same-stores sales and lower consumer demand. Credit: Photo by Jared C. Tilton – Formula 1/Formula 1 via Getty Images

Boot Barn saw a 6.5% increase in total net sales to $374.5m from $351.6m in the second fiscal quarter ended 30 September 2023. While consolidated, retail and e-commerce same store sales saw a downward trend.

The increase in net sales was attributed to the incremental sales from new stores opening over the past twelve months, partially offset by the decrease in consolidated same store sales.

Income from operations decreased $5.6m to $38.6m, compared to $44.2m in the prior-year period.

Net income was $27.7m as opposed to $32.1m in the same period last year primarily due to changes to state tax rates, partially offset by income tax accounting for share-based compensation.

Jim Conroy, president and chief executive officer at Boot Barn Holdings Inc, believes the sequential decline in same stores sales this quarter was driven by a macro pull back in customer demand.

However, Conroy adds: “I am pleased with our second quarter results which included solid sales growth, merchandise margin expansion and earnings achievement which was at the high end of our guidance range. We believe that our inventory levels and expense structure are well positioned as we enter the holiday season.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Just Style.

I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the privacy policy

“We opened 10 new stores in the quarter and continue to be encouraged by the new store performance across the country. Exclusive brand penetration expanded more than 600 basis points as our brands are resonating well with the consumer. Our average store sales volume remains at elevated levels with a modest 3.8% decline in retail store same store sales for the quarter.”

The company pointed out it is updating guidance for the fiscal year ending 30 march 2024, superseding in its entirety the previous guidance, and now expects to open 52 new stores in addition.

Last week, Kontoor Brands, which owns denim brands Wrangler and Lee reports positive third quarter (Q3) for 2023 with its president and CEO expecting “investments in innovation and demand creation” to drive sales further.