EPS of $1.26 increased by 12.3% from previous year
Gross margin of 37.0%
Net income of 38.91M
""We believe our 10% revenue growth in the quarter outpaced the industry and has enabled us to continue to build on our recent market share gains."" - Jim Conroy
Boot Barn Holdings Inc (BOOT) Q1 2025 Financial Results: Strong Growth and Strategic Expansion
Executive Summary
Boot Barn Holdings Inc reported impressive financial results for the first quarter of fiscal 2025, showcasing a revenue increase of $423 million, representing a 10.3% year-over-year growth. The growth was attributed to a combination of expanded store openings and positive same-store sales (1.4%), indicating robust consumer demand across both retail and e-commerce channels. Management highlighted the successful execution of strategic initiatives focused on expanding the store base, enhancing same-store sales, and boosting merchandise margins, which expanded by 100 basis points due to improved supply chain efficiencies. As per CEO Jim Conroy, "We are very pleased with our first quarter results and a solid start to our fiscal year," and they anticipate a continuation of growth momentum into the coming quarters, as they opened 11 new stores, bringing the total to 411 stores across 46 states.
Key Performance Indicators
Revenue
423.39M
QoQ: 8.99% | YoY:10.34%
Gross Profit
156.74M
37.02% margin
QoQ: 12.42% | YoY:10.41%
Operating Income
50.22M
QoQ: 31.32% | YoY:8.60%
Net Income
38.91M
QoQ: 32.17% | YoY:13.59%
EPS
1.28
QoQ: 31.96% | YoY:12.28%
Revenue Trend
Margin Analysis
Key Insights
**Revenue:** $423 million (YoY: +10.3%, QoQ: +8.99%)
**Gross Profit:** $157 million (YoY: +10.41%, QoQ: +12.42%)
**Operating Income:** $50 million (YoY: +8.60%, QoQ: +31.32%)
**Net Income:** $39 million (YoY: +13.59%, QoQ: +32.17%)
Financial Metrics
- Revenue: $423 million (YoY: +10.3%, QoQ: +8.99%)
- Gross Profit: $157 million (YoY: +10.41%, QoQ: +12.42%)
- Operating Income: $50 million (YoY: +8.60%, QoQ: +31.32%)
- Net Income: $39 million (YoY: +13.59%, QoQ: +32.17%)
- EPS (Diluted): $1.26 (YoY: +12.28%, QoQ: +31.96%)
- Merchandise Margin Rate: Increased by 100 basis points to 37%.
Management noted that their sales growth significantly outpaced the industry, reinforcing their market share gains amidst broader economic uncertainties.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
423.39M
10.34%
8.99%
Gross Profit
156.74M
10.41%
12.42%
Operating Income
50.22M
8.60%
31.32%
Net Income
38.91M
13.59%
32.17%
EPS
1.28
12.28%
31.96%
Key Financial Ratios
currentRatio
2.33
grossProfitMargin
37%
operatingProfitMargin
11.9%
netProfitMargin
9.19%
returnOnAssets
2.19%
returnOnEquity
3.96%
debtEquityRatio
0.5
operatingCashFlowPerShare
$1.36
freeCashFlowPerShare
$0.47
priceToBookRatio
4
priceEarningsRatio
25.21
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Revenue Growth: Pricing Dynamics
- Jim Conroy noted: "We believe our 10% revenue growth in the quarter outpaced the industry and has enabled us to continue to build on our recent market share gains."
Store Expansion Strategy
- "Our new store pipeline remains healthy, and we expect to open 60 new units this year," indicating a robust growth strategy aimed at enhancing retail footprint.
E-commerce Strength
- E-commerce same-store sales increased by 6.7%, with management asserting that "over half of our online orders are fulfilled by the stores," representing a strategic advantage in omnichannel retailing.
"We believe our 10% revenue growth in the quarter outpaced the industry and has enabled us to continue to build on our recent market share gains."
â Jim Conroy
"I will now turn the call over to Jim Conroy, Boot Barn's President and Chief Executive Officer."
â Mark Dedovesh
Forward Guidance
Management guidance for fiscal 2025 anticipates total sales of $1.85 billion, marking an 11% increase from fiscal 2024. Same-store sales growth is expected to be 1.2%, and gross profit margin is projected to hit 37.2%. Leadership highlighted an optimistic view on growth driven by new store openings and continued improvement in merchandise margins, with Jim Conroy stating: "We continue to expect a greater than 100 basis point increase in merchandise margin driven by supply chain efficiencies and growing exclusive brands."
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
BOOT Focus
37.02%
11.90%
3.96%
25.21%
ROST
28.10%
12.20%
9.86%
22.20%
PLCE
30.30%
-9.59%
1.09%
-65.10%
BKE
46.00%
16.20%
8.03%
13.60%
HIBB
33.70%
10.10%
8.99%
4.84%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The overall investment outlook for Boot Barn appears positive given the robust Q1 results, coupled with a proactive growth strategy and enhanced operational efficiencies. Continued focus on consumer sentiment and macroeconomic factors will be critical to monitor. The anticipated growth in revenue, investment in omnichannel capabilities, and strategic store expansion are likely to drive shareholder value. Investors should keep an eye on the company's ability to maintain margins and manage debt effectively amidst a volatile economic landscape.
Key Investment Factors
Growth Potential
Boot Barn is positioned for continued growth with plans to open 60 new stores, which could double its current store count in the U.S.
Profitability Risk
Exposure to consumer sentiment and macroeconomic factors such as inflation and potential disruption in supply chains, particularly with reliance on vendors.
Financial Position
With a cash position of $83 million and no drawn credit, Boot Barn maintains a healthy balance sheet. However, total debts of $491 million should be monitored closely as sales fluctuation can impact debt servicing.
SWOT Analysis
Strengths
Strong revenue growth and increasing market share
Successful expansion strategy with new store openings
Improved merchandise margins due to cost management
Weaknesses
Vulnerability to economic downturns impacting consumer discretionary spending
Limited brand diversification outside of core Western apparel
Opportunities
Expanding e-commerce capabilities and market reach
Potential for leveraging exclusive brands into new segments
Threats
Economic volatility and competition from other retailers
Supply chain risks associated with international sourcing