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Dive Brief:
Boot Barn’s second quarter net sales grew 15.1% year over year to $581.8 million, according to a Wednesday press release. Same-store sales increased 1.4%, with more growth stemming from e-commerce versus retail locations.
Boot Barn lowered its full-year outlook, now expecting total sales to grow 14% to 15% instead of its previously projected range of 14% to 16%. The company lowered its consolidated same-store sales growth expectation to a range from 0.8% to 2%, instead of the previous 2% to 4% range.
However, Boot Barn raised its store opening outlook for the fiscal year. It now plans to open 75 to 80 locations for fiscal year 2027, up from the previous expectation to open 70.
Dive Insight:
A lowered outlook, a hit to the women’s boot category and unusually warm weather aren’t stopping Boot Barn from expanding.
“While recent results demonstrate the opportunity to outperform our projections, we continue to underwrite new locations to approximately $3.2 million in first-year sales, consistent with our historical approach,” CEO John Hazen said on a call with analysts Wednesday. “With a long-term opportunity to expand to 1,200 locations nationwide, we remain confident in our ability to sustain new store growth for years to come.”
To drive sales, Boot Barn also made changes to store merchandise displays, which include moving premium denim to the front of the store while moving value-focused denim offerings to the back.
The executive noted that the western boots business for both men and women dragged in the latest quarter. The retailer is refreshing its assortment of women’s boots with a broader selection of styles and colors for the holiday season.
Boot Barn’s third quarter outlook came in below some analyst expectations. The retailer anticipates Q3 sales growth of 11% to 14%, but a potential same-store sales decline of up to 1%.
“We don’t anticipate much improvement until Dec as initiatives take time to scale but need to see comps inflect exiting 3Q to maintain confidence in the historical durability of the [business],” TD Cowen analysts said in a Wednesday note. “Meanwhile, we’re constructive on new store ramps, cost control & buybacks.