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Boot Barn (BOOT) Posts Preliminary Q3 Results, Sales Up 71.1%

Boot Barn Holdings, Inc. BOOT reported impressive preliminary results for the third quarter of fiscal 2022. Management has cited that the company delivered sturdy sales in the third quarter, following a robust first-half fiscal 2022. Quarterly results gained from stellar customer growth with solid team execution efforts.

Despite supply-chain bottlenecks and labor headwinds, Boot Barn Holdings maintained a healthy inventory position. BOOT also recruited seasonal workers to boost solid sales performance and expand market share.

Preliminary Results

Encouragingly, this lifestyle retailer of western and work-related footwear, apparel and accessories highlighted that net sales jumped 71.1% from the quarter ended Dec 28, 2019, to nearly $485.9 million for the quarter ended Dec 25, 2021. Third-quarter fiscal 2022 same-store sales grew 61% from the quarter ended Dec 28, 2019. Same-store sales included retail store same-store sales growth of about 59.1% and e-commerce sales increase of roughly 69.3%.

Impressively, third-quarter earnings came in at approximately $2.27 per share, up from 85 cents recorded two years ago. The quarterly earnings included gains of about 4 cents owing to income tax accounting for share-based compensation. Excluding the tax benefit, earnings per share surged 175% to $2.23 from 81 cents registered in the quarter ended Dec 28, 2019.

Management expects to report cash of $115 million. During the fiscal third quarter, management paid off the remaining $50-MILLION term loan and exited the quarter with no outstanding debt.

What’s More?

Solid full-price selling and higher brand penetration further drove third-quarter performance. These factors led to a 420-basis-point rise in merchandise margin compared with the quarter ended Dec 28, 2019. These also fueled by a 175% increase in earnings per share. Robust momentum seen in the fiscal third quarter has sustained into the fiscal fourth quarter.

We note that the preliminary results are subject to the completion of normal quarter-end accounting practices and closing adjustments. Boot Barn’s robust growth initiatives, including merchandise strategies and omni-channel endeavors, bode well. Also, work boots has been the robust performing category. Management has been witnessing solid gains across the stores and online on higher customer count and a seamless shopping experience.

A glimpse of the Zacks Rank #3 (Hold) company’s price performance shows that its shares have appreciated 58.2% over the past six months, outshining its industry’s 19.2% growth.

Key Picks in Retail

Some top-ranked stocks in the Retail sector are Zumiez ZUMZ, Tapestry TPR and Costco COST.

Zumiez, a global lifestyle retailer, currently flaunts a Zacks Rank of 1 (Strong Buy). Shares of ZUMZ have increased 25.6% in the past year. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Zumiez’s fiscal 2022 sales suggests growth of 1.1% from the year-ago period’s reading. ZUMZ has a significant trailing four-quarter earnings surprise, on average.

Tapestry, the leading accessories’ designer, presently carries a Zacks Rank #1. TPR has a trailing four-quarter earnings surprise of 29%, on average. The stock has rallied 23.2% in the past year.

The Zacks Consensus Estimate for Tapestry’s fiscal 2022 sales and earnings per share (EPS) suggests growth of 14.8% and 17.9%, respectively, from the corresponding year-ago period’s levels. TPR has an expected EPS growth rate of 12.3% for three-five years.

Costco, a general merchandise retailer, carries a Zacks Rank #2 (Buy) at present. Shares of COST have surged 52% in the past year.

The Zacks Consensus Estimate for Costco’s fiscal 2022 sales and EPS suggests growth of 7.6% and 9.5%, respectively, from the year-ago period’s corresponding figures. COST has a trailing four-quarter earnings surprise of 8.3%, on average.

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Zumiez Inc. (ZUMZ): Free Stock Analysis Report
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