What happened
Shares of Boot Barn Holdings Inc. (BOOT 3.42%) climbed 14.9% Wednesday after the western and work footwear and apparel retailer announced strong fiscal first-quarter 2019 results and increased its full-year guidance.
Boot Barn's quarterly net sales climbed 16.2% year over year to $162 million, including an 11.6% increase in same-store sales. On the bottom line, that translated to net income of $6.8 million, or $0.24 per share, up from $0.03 per share in the same year-ago period. By comparison, Boot Barn's latest guidance, provided in May, called for quarterly net income per share of $0.10 to $0.12, and more modest same-store sales growth of 10%.
Image source: Getty Images.
So what
Boot Barn CEO Jim Conroy stated that they're "encouraged" by their strong start to the fiscal year, noting merchandise margins expanded by 140 basis points during the quarter thanks to full-priced selling and exclusive brand penetration.
"I'm equally pleased that the positive momentum in the business continued in July," Conroy added.
Now what
For the current second quarter of fiscal year 2019, Boot Barn expects same-store sales growth in the high single-digit range, with net income per share of $0.07 to $0.09. For the full fiscal year 2019, Boot Barn continues to expect same-store sales growth in the mid-single digits, but also increased its outlook for net income per diluted share to be in the range of $1.04 to $1.14 (up from $0.92 to $1.02 previously).
All things considered, this was another straightforward beat-and-raise situation from Boot Barn, and investors responded appropriately by bidding up the stock to a fresh 52-week high.
