EPS of $1.74 increased by 36.7% from previous year
Gross margin of 39.1%
Net income of 53.41M
""We are on track to open 65 to 70 new stores this year in both legacy and new markets."" - John Hazen, CEO
Boot Barn Holdings Inc (BOOT) Q1 2026 Financial Results: Strong Revenue Growth and Strategic Initiatives Drive Performance
Executive Summary
Boot Barn Holdings Inc (BOOT) has delivered a robust performance in Q1 2026, achieving a significant revenue increase of 19% to $504 million, largely attributed to strong new store openings and a solid 9.4% increase in same-store sales. Management attributes this success to the effective execution of its four strategic initiatives, driving both sales and margins. Notably, earnings per diluted share rose by 38%, reaching $1.74, reflecting the positive trajectory of the company amid the ongoing uncertainty in consumer demand owing to external economic conditions. Management's commitment to expanding exclusive brands and improving operational efficiencies is central to its growth narrative.
Key Performance Indicators
Revenue
504.07M
QoQ: 11.09% | YoY:19.06%
Gross Profit
197.22M
39.13% margin
QoQ: 16.99% | YoY:25.83%
Operating Income
70.72M
QoQ: 42.33% | YoY:40.81%
Net Income
53.41M
QoQ: 42.27% | YoY:37.26%
EPS
1.75
QoQ: 42.28% | YoY:36.72%
Revenue Trend
Margin Analysis
Key Insights
**Revenue:** $504.07 million (YoY: +19%, QoQ: +11%)
Boot Barn's improvement in merchandise margin and disciplined expense control underpins its operational performance. The increase in same-store sales consisted of a 9.5% improvement from brick-and-mortar locations and a 9.3% increase in e-commerce sales, evidencing a well-rounded performance from physical and digital presence. Furthermore, SG&A expenses as a percentage of sales have improved slightly due to effective cost management practices, reflecting the company's commitment to operational efficiency.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
504.07M
19.06%
11.09%
Gross Profit
197.22M
25.83%
16.99%
Operating Income
70.72M
40.81%
42.33%
Net Income
53.41M
37.26%
42.27%
EPS
1.75
36.72%
42.28%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Key Insights from Management:
- John Hazen, CEO: "First quarter revenue increased 19% to $504 million, and consolidated same-store sales increased 9.4%. The team’s ability to deliver strong top and bottom line results reflects the execution of our four strategic initiatives."
- Jim Watkins, CFO: "The increase in merchandise margin rate was primarily the result of better buying economies of scale, lower freight expense, and growth in exclusive brand penetration. Additionally, markdowns as a percentage of inventory are below last year and historical levels, indicating a healthy inventory position."
The company emphasizes the expansion of its store network, having opened 14 new stores in the quarter, and plans to operate around 473 locations nationally. They continue to see strong performance in their newer store openings, exceeding initial expectations.
"We are on track to open 65 to 70 new stores this year in both legacy and new markets."
— John Hazen, CEO
"We expect exclusive brand penetration to stay above 40% for the remainder of this fiscal year and aim for 50% over the next 5 to 6 years."
— John Hazen, CEO
Forward Guidance
Management raised its full-year guidance, anticipating total sales for fiscal 2026 to reach approximately $2.18 billion, representing a growth of 14%, with same-store sales forecasted to increase by 3.5%. Management expressed caution regarding tariffs and overall macroeconomic uncertainty but remains optimistic about maintaining a solid growth path through strategic initiatives targeting exclusive brands and enhanced store performance. Management's commitment to maintaining operational control through careful expense management and focus on both current and upcoming product assortments plays a crucial role in achieving these targets. Further, monitoring consumer sentiment and external market conditions remains essential.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
BOOT Focus
39.13%
N/A
N/A
N/A
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
Boot Barn Holdings Inc is poised for continued success in the consumer cyclical sector due to its strategic focus on expanding store count, enhancing e-commerce capabilities, and deepening exclusive brand penetration. The positive momentum in sales growth and effective management of costs positions Boot Barn favorably against peers in the retail apparel space. Investors should watch for developments regarding consumer sentiment, tariff impacts, and the overall economic landscape that may affect discretionary spending in the near term.
Key Investment Factors
Growth Potential
Boot Barn's aggressive growth strategy of expanding its store footprint offers significant upside potential, particularly given their performance with newer openings. The potential to double the store count in the U.S. signals a robust growth outlook, supported by increasing exclusive brand penetration.
Profitability Risk
External factors, including ongoing tariff impacts and macroeconomic conditions, pose potential risks to consumer spending and overall sales growth. The company also faces competitive pressures from both legacy players and startups in the retail apparel space.
Financial Position
Boot Barn showcases a strong balance sheet with a cash reserve of $95 million, no debt drawn on its $250 million revolving credit line, and manageable inventory levels despite a 23% total inventory increase YoY. Their ability to convert cash flows into meaningful investments while maintaining liquidity is a positive indicator.
SWOT Analysis
Strengths
Strong brand recognition in the western and work apparel segments.
Solid management team executing on strategic growth initiatives.
Robust e-commerce growth with over 75% of online sales driven from their website.
Weaknesses
Heavy reliance on discretionary consumer spending, which can be affected by economic downturns.
Inventory increases may indicate risk if sales do not continue to meet expectations.
Opportunities
Expansion of store footprint presents growth avenues with anticipated revenue increases from new units.
Increasing customer loyalty and engagement through omnichannel fulfillment, which may drive higher sales.
Focus on exclusive brands, which improves margins and could lead to enhanced market positioning.
Threats
Tariff pressures causing cost increases could affect profitability.
Intensifying competition from both traditional and online retailers in the apparel sector.