EPS of $1.24 increased by 26.8% from previous year
Gross margin of 37.2%
Net income of 37.54M
""I am very pleased with our results across all metrics. We have consistently performed well in all areas with a strong commitment to our strategic initiatives that drive growth."" - John Hazen, CEO
In the fourth quarter of fiscal 2025, Boot Barn Holdings Inc (BOOT) achieved remarkable financial milestones, showcasing a resilient performance with total revenue soaring to $454 million, representing a 17% increase year-over-year. This success is underpinned by the opening of 21 new stores and robust same-store sales growth driven by both physical and e-commerce channels.
Despite prevailing headwinds from tariff-related costs and market uncertainties, management demonstrated confidence in sustaining positive momentum moving into fiscal 2026, forecasting operational challenges while maintaining strong brand reputation and customer loyalty. Notably, EPS rose to $1.22, compared to $0.96 in the previous year, reflecting effective expense control and profitability enhancement measures.
Key Performance Indicators
Revenue
453.75M
QoQ: -25.39% | YoY:16.81%
Gross Profit
168.57M
37.15% margin
QoQ: -29.43% | YoY:20.91%
Operating Income
49.69M
QoQ: -50.05% | YoY:29.92%
Net Income
37.54M
QoQ: -49.99% | YoY:27.51%
EPS
1.23
QoQ: -50.00% | YoY:26.80%
Revenue Trend
Margin Analysis
Key Insights
**Revenue Growth:** Q4 2025 revenue increased by **17% YoY** to **$454 million**.
**Same-Store Sales Growth:** Consolidated same-store sales grew by **6%**, with retail store sales rising by **5.5%** and e-commerce sales by **9.8%**.
**Net Income:** Increased by **27.5%** to **$37.5 million**, with a corresponding **EPS of $1.22**.
**Operating Income:** Rose to **$50 million**, representing **11% of sales**, compared to **9.8%** in the previous year.
**Total Assets:** Stood at **$2,018 million**, with **$70 million** in cash and zero drawn on their credit facility.
Financial Highlights
Revenue and Profitability Trends:
- Revenue Growth: Q4 2025 revenue increased by 17% YoY to $454 million.
- Same-Store Sales Growth: Consolidated same-store sales grew by 6%, with retail store sales rising by 5.5% and e-commerce sales by 9.8%.
- Net Income: Increased by 27.5% to $37.5 million, with a corresponding EPS of $1.22.
- Operating Income: Rose to $50 million, representing 11% of sales, compared to 9.8% in the previous year.
Balance Sheet Strength:
- Total Assets: Stood at $2,018 million, with $70 million in cash and zero drawn on their credit facility.
- Debt Levels: Total debt of $563 million, translating to a decent debt-to-equity ratio at 0.498.
Cash Flow Performance:
- Free Cash Flow: Negative at -$83 million, primarily due to high capital expenditures and working capital changes, yet bolster growth through store expansion and inventory sourcing adjustments.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
453.75M
16.81%
-25.39%
Gross Profit
168.57M
20.91%
-29.43%
Operating Income
49.69M
29.92%
-50.05%
Net Income
37.54M
27.51%
-49.99%
EPS
1.23
26.80%
-50.00%
Key Financial Ratios
currentRatio
2.45
grossProfitMargin
37.2%
operatingProfitMargin
11%
netProfitMargin
8.27%
returnOnAssets
1.86%
returnOnEquity
3.32%
debtEquityRatio
0.5
operatingCashFlowPerShare
$-1.41
freeCashFlowPerShare
$-2.72
priceToBookRatio
2.81
priceEarningsRatio
21.18
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Strategic Highlights from Management:
1. Expansion Strategy: CEO John Hazen emphasized a commitment to open 65-70 new stores in fiscal 2026, maintaining a growth trajectory and expanding the company's geographical footprint.
2. Tariff Strategy: Hazen remarked, "We are confident in our team’s ability to navigate current challenges and maintain merchandise margin rates despite tariff pressures."
3. Customer Centricity: The customer loyalty database grew by 14%, indicating effective engagement strategies. Hazen stated, "We harness this data to tailor our offerings and address customer preferences directly."
4. Market Conditions: CFO Jim Watkins pointed out potential impacts from upcoming tariff price increases, potentially softening consumer demand, saying, "Our guidance contemplates cents in potential lower sales volumes due to tariffs, creating a fluid pricing strategy."
Inventory Insights:
The increased inventory of $747 million, reflects a proactive approach to manage future demand post-tariff, ensuring favorable price positioning for exclusive brands.
"I am very pleased with our results across all metrics. We have consistently performed well in all areas with a strong commitment to our strategic initiatives that drive growth."
— John Hazen, CEO
"We are confident in our team’s ability to navigate current challenges and maintain merchandise margin rates despite tariff pressures."
— John Hazen, CEO
Forward Guidance
For fiscal 2026, Boot Barn anticipates total sales to range between **$2.07 billion to $2.15 billion**, reflecting respective growth of **8-13%** year-over-year. Management guidance includes:
- **Same-Store Sales Growth:** Expected between **2-3%**.
- **Gross profit margin** to remain flat at around **50.1% of sales**.
- **EPS Guidance:** Anticipated at **$5.50 (low-end) to $6.40 (high-end)**, contingent upon ongoing market conditions and consumer demand levels.
Overall, investors should monitor the impact of tariffs on margin structure and pricing power as Boot Barn maneuvers through this transitional period.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
BOOT Focus
37.15%
11.00%
3.32%
21.18%
ROST
26.50%
12.40%
10.20%
20.91%
PLCE
28.50%
1.67%
13.40%
-3.92%
BKE
52.60%
25.40%
18.20%
7.73%
HIBB
35.20%
11.10%
10.20%
5.50%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Investors should look favorably upon Boot Barn's ability to sustain growth amidst challenges, reinforcing its competitive positioning within the retail market. With an effective management strategy focused on customer engagement and inventory positioning, Boot Barn aims to navigate external pressures while targeting long-term shareholder value. The balance of growth investments and effective risk mitigation strategies indicates potential for solid returns in the coming fiscal year.
Key Investment Factors
Growth Potential
Boot Barn displays robust growth potential through its strategic expansion initiatives, increase in exclusive brand penetration, and strong same-store sales momentum. Targeting a **15% new store growth**, with projected revenues exceeding **$2 billion** reflects a commitment to organic growth.
Profitability Risk
Potential risks include reliance on consumer behavior shaped by macroeconomic factors, the unpredictable impact of tariffs on product costs, and competition within the Consumer Cyclical sector compounded by evolving retail consumer trends.
Financial Position
Boot Barn maintains a solid financial position evidenced by sound asset management, proactive cash flow strategies, and a manageable debt profile. With cash flow generation anticipated to finance expansion and shareholder returns, financial health remains strong.
SWOT Analysis
Strengths
Strong brand recognition and customer loyalty
Consistent revenue growth driven by both e-commerce and physical channels
Effective inventory management reducing dependency on high-tariff products
Weaknesses
Dependence on third-party vendors for inventory leading to potential supply chain disruptions
Limited international market presence compared to competitors
Opportunities
Expansion into new markets with plans to open 60+ stores
Increased penetration of exclusive brands and enhancement of online sales capabilities
Threats
Ongoing tariff uncertainties and potential economic downturn affecting consumer spending
Intensifying competition from both major retailers and local shops in the apparel sector