US retailer Boot Barn's net sales surge 4.9% in Q1 FY24

04 Aug '23

2 min read

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US-based retailer Boot Barn Holdings' Q1 FY24 saw net sales increase by 4.9 per cent to $383.7 million, due to new stores and higher prices.
The company's gross profit grew to $142 million, but income from operations fell to $46.2 million.
Net income decreased to $34.3 million, or $1.13 per diluted share.
The company opened 16 new stores.

Boot Barn Holdings, a leading lifestyle retailer of footwear and apparel, has reported an increase of 4.9 per cent in net sales in the first quarter (Q1) of fiscal 2024 (FY24), totalling $383.7 million, up from $365.9 million in the same period last year. This growth is primarily attributed to the additional revenue from new stores opened over the past year and higher average unit retail prices driven partly by inflation. However, this was partly offset by a 2.9 per cent decrease in consolidated same store sales, with retail store sales down 1.8 per cent and e-commerce sales decreasing by a notable 10.8 per cent.

Gross profit rose to $142 million, or 37 per cent of net sales, up from $137.8 million or 37.7 per cent of net sales recorded in the previous year, the company said in a press release.

Selling, general and administrative expenses in Q1 FY24 climbed to $95.7 million, or 24.9 per cent of net sales, up from $85.4 million or 23.3 per cent of net sales in Q1 FY23.

Income from operations took a hit, decreasing $6.2 million to $46.2 million, or 12.1 per cent of net sales, compared to $52.4 million, or 14.3 per cent of net sales, in the prior-year period. This decline is largely attributed to the factors mentioned above.

Net income was reported at $34.3 million in Q1 FY24, or $1.13 per diluted share, marking a decrease from the $39.3 million, or $1.29 per diluted share, recorded in Q1 FY23. After excluding tax benefits, net income per diluted share stood at $1.11 for the current year, compared to $1.26 in the prior year period.

The company expanded its footprint by opening 16 new stores, bringing its total store count to 361.

“Total revenue continued to grow, driven by the performance of new stores. From a same store sales growth perspective, we saw a modest 2.9 per cent decline despite cycling outsized comp sales growth in the first quarter for each of the past two years. Once again, we were able to expand our merchandise margin through a significant increase in the penetration of our margin enhancing exclusive brands which reached 38 per cent of sales for the quarter. Earnings also surpassed our expectations, driven by a steadily improving retail store same store sales trend which turned positive in June and remained positive in July,” said Jim Conroy, president and chief executive officer.

Fibre2Fashion News Desk (DP)

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