EPS of $2.43 increased by 33.7% from previous year
Gross margin of 39.3%
Net income of 75.07M
"We believe we have the market potential to double our store account in the U.S. alone over the next several years." - John Hazen
Boot Barn Holdings Inc (BOOT) Q3 2025 Financial Results: Strong Growth and Margin Expansion Amid Robust Demand
Executive Summary
Boot Barn Holdings Inc delivered robust financial performance in Q3 of fiscal 2025, achieving a revenue of $608 million, which represents a year-over-year growth of 17%. This growth is attributed to a consolidated same-store sales increase of 8.6%, with both physical stores and e-commerce channels showing positive trends. Notable was the merchandise margin expansion of 130 basis points, driven by effective supply chain management and increased penetration of exclusive brands. Management emphasized their commitment to expanding the store footprint across the U.S. and enhancing online sales capabilities. The quarter’s earnings per diluted share reached $2.43, exceeding guidance and highlighting strong operational execution during the crucial holiday season.
Key Performance Indicators
Revenue
608.17M
QoQ: 42.83% | YoY:16.87%
Gross Profit
238.87M
39.28% margin
QoQ: 56.27% | YoY:19.97%
Operating Income
99.46M
QoQ: 148.79% | YoY:32.36%
Net Income
75.07M
QoQ: 155.08% | YoY:34.95%
EPS
2.46
QoQ: 156.25% | YoY:33.70%
Revenue Trend
Margin Analysis
Key Insights
**Revenue**: $608 million (YoY +17%, QoQ +42.83%)
**Gross Profit**: $239 million (YoY +20%, QoQ +56.27%)
**Operating Income**: $99 million (YoY +32.36%, QoQ +148.79%)
**Net Income**: $75 million (YoY +34.95%, QoQ +155.08%)
**EPS**: $2.43 (YoY +33.70%, QoQ +156.25%)
Financial Highlights
# Financial Metrics Overview
- Revenue: $608 million (YoY +17%, QoQ +42.83%)
- Gross Profit: $239 million (YoY +20%, QoQ +56.27%)
- Operating Income: $99 million (YoY +32.36%, QoQ +148.79%)
- Net Income: $75 million (YoY +34.95%, QoQ +155.08%)
- EPS: $2.43 (YoY +33.70%, QoQ +156.25%)
The increase in sales is largely attributed to 13 new store openings in the quarter, boosting revenue, while same-store sales reflected positive trends across all major merchandise categories. The management’s focus on maintaining a robust supply chain facilitated effective margin management.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
608.17M
16.87%
42.83%
Gross Profit
238.87M
19.97%
56.27%
Operating Income
99.46M
32.36%
148.79%
Net Income
75.07M
34.95%
155.08%
EPS
2.46
33.70%
156.25%
Key Financial Ratios
currentRatio
2.2
grossProfitMargin
39.3%
operatingProfitMargin
16.4%
netProfitMargin
12.3%
returnOnAssets
3.73%
returnOnEquity
6.88%
debtEquityRatio
0.5
operatingCashFlowPerShare
$5.14
freeCashFlowPerShare
$3.74
priceToBookRatio
4.39
priceEarningsRatio
15.94
Net Income vs. Revenue
Expense Breakdown
Management Commentary
### Management Insights from Earnings Call
- Strategic Expansion: "We opened 13 stores in the third quarter, ending the period with 438 stores in 46 states. We have 21 planned store openings in the fourth quarter." - John Hazen, Interim CEO.
- Same-Store Sales Performance: "Third quarter consolidated same store sales grew 8.6%, driven by a 6% increase in transactions." - Jim Watkins, CFO.
- Margin Improvement: "Merchandise margin expanded 130 basis points driven by supply chain efficiencies and better buying economies of scale." - John Hazen, Interim CEO.
Management's commentary suggests a robust growth trajectory supported by targeted strategic initiatives.
We believe we have the market potential to double our store account in the U.S. alone over the next several years.
— John Hazen
Our customers are increasingly returning, and we credit our merchandising strategies for positioning our products effectively to meet their needs.
— Jim Watkins
Forward Guidance
Management has raised its guidance for fiscal 2025, now expecting total sales at the high end of the range to reach **$1.92 billion**, reflecting a **15%** growth. They project a same-store sales increase of **5.9%** for the fiscal year along with a targeted gross profit of **$716 million**. Upcoming store openings in Q4 and continued e-commerce growth signal robust future performance, despite some anticipated margin pressures due to buying and occupancy expenses.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
BOOT Focus
39.28%
16.40%
6.88%
15.94%
ROST
28.30%
11.90%
9.29%
23.66%
PLCE
35.50%
7.50%
-40.50%
2.24%
BKE
47.70%
18.60%
9.04%
11.90%
HIBB
34.30%
7.90%
7.57%
7.91%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
Given the current growth trajectory, strategic expansion plans, and financial performance, Boot Barn Holdings Inc presents a favorable investment opportunity. The company's commitment to enhancing its store base and online presence positions it well for continued growth. However, investors should monitor potential risks related to inventory management and market dynamics. Quantitative growth metrics alongside qualitative insights from management support a bullish outlook for the stock.
Key Investment Factors
Growth Potential
Boot Barn's strategic plan to double its store footprint suggests significant growth potential in a currently underserved market segment.
Profitability Risk
Increased inventory and potential supply chain disruptions, alongside inflationary pressures on costs, could affect profitability if not managed effectively.
Financial Position
With a **current ratio of 2.20** and a **quick ratio of 0.51**, Boot Barn appears financially solvent, supported by strong cash flow from operations and a healthy balance sheet.
SWOT Analysis
Strengths
Strong brand recognition in the Western wear market.
Diverse revenue streams from both retail and e-commerce channels.
Effective supply chain and merchandizing strategies enhancing margins.
Weaknesses
Dependency on seasonal sales can lead to volatility in revenues.
Higher inventory levels can pose risks if demand forecasts are inaccurate.
Limited geographic presence compared to larger competitors.
Opportunities
Expansion into new geographic markets with planned new store openings.
Increasing penetration of exclusive brands could drive margins higher.
Growth in e-commerce sales, which saw a **11.1%** increase during the quarter.
Threats
Rising costs due to inflation impacting margin sustainability.
Increased competition from both brick-and-mortar and online retailers in the consumer cyclicals sector.