Boot Barn Holdings Inc. reported a 15% increase in fiscal second-quarter sales and 26% growth in diluted earnings per share, as store expansion and higher merchandise margins supported results despite modest comparable-sales growth. The western and workwear retailer also increased its fiscal 2027 new-store plan to 75 to 80 locations from 70.
For the second quarter ended in fiscal 2027, net sales rose to $582 million from $505 million a year earlier. Consolidated same-store sales increased 1.4%, bringing the two-year comparable-sales stack to 10%.
Diluted earnings per share reached $1.73, up from $1.37 in the prior-year quarter. The latest result included an estimated $0.05-per-share benefit from tariff refunds.
Merchandise margin expanded by 190 basis points year over year. Freight contributed 130 basis points of the improvement, tariff refunds added 40 basis points, or about $2.2 million, and product margin contributed another 20 basis points.
Store Expansion Remains a Major Growth Driver
Boot Barn now plans to open 75 to 80 stores in fiscal 2027, increasing its year-end store count to an estimated 619 from 539 in fiscal 2026. The company estimates that the U.S. market could ultimately support 1,200 locations.
Its new-store model targets approximately 12,000 selling square feet and about $3.2 million in first-year sales. Boot Barn estimates a total net investment of roughly $1.7 million per store, including $900,000 of capital investment and $800,000 of inventory. The company targets a first-year cash-on-cash return of about 53% and a payback period of approximately 1.8 years.
Comparable-sales performance varied during the quarter. Consolidated same-store sales were down 0.3% in July before rising 2.1% in August and 2.0% in September. Preliminary October comparable sales increased 0.4%, including a 0.5% gain at stores and a 0.9% decline in e-commerce.
Stores represented about 91% of second-quarter sales, while e-commerce accounted for approximately 9%. Boot Barn is continuing to develop its omnichannel capabilities through ship-to-store, buy-online-pickup-in-store and store-based fulfillment, along with same-day delivery and digital tools for customers and employees. The company has also relaunched its business-to-business offering through BootBarnWorkforce.com.
Merchandise Margin and Exclusive Brands
Boot Barn identified stronger full-price selling, purchasing scale, supply-chain efficiencies, volume discounts, sourcing improvements and exclusive-brand penetration as merchandise-margin drivers. The company said annual merchandise margin has expanded by approximately 1,050 basis points over 10 years.
Exclusive brands are expected to represent as much as 40.3% of fiscal 2027 sales, compared with 40.8% in fiscal 2026. Boot Barn maintains a long-term penetration target of 50% and estimates that its exclusive products carry margins about 1,000 basis points higher than third-party brands.
Fiscal 2027 Outlook
For the full fiscal year, Boot Barn expects net sales of $2.565 billion to $2.593 billion, representing growth of 14% to 15%. Consolidated same-store sales are projected to rise between 0.8% and 2.0%, with store comparable sales up 0.5% to 1.7% and e-commerce comparable sales increasing 3.0% to 4.0%.
GAAP diluted earnings per share are expected to range from $8.72 to $9.00. At the high end, that would represent 22% growth from the prior year. The forecast includes an estimated $0.45-per-share benefit from tariff refunds.
The company projects merchandise margin of 52.3%, including a 140-basis-point year-over-year increase at the high end of guidance. That improvement includes 70 basis points from approximately $17.6 million of tariff refunds, 50 basis points from product margin and 20 basis points from freight. Boot Barn expects gross margin of 38.4% to 38.5% and operating margin of 13.7% to 14.0%. Net capital expenditures are forecast at $140 million.
For the third quarter, the company expects sales of $785 million to $802 million, up 11% to 14%, with consolidated same-store sales ranging from a 1% decline to a 1% increase. GAAP diluted earnings per share are projected at $3.03 to $3.19. Boot Barn plans to open approximately 20 stores during the quarter.
The outlook remains subject to risks including weaker consumer confidence and discretionary spending, inflation, changing consumer preferences, tariffs and trade restrictions, and uncertainty surrounding global economic conditions. Boot Barn also cited execution of its growth strategy, supplier relationships, competition, brand strength and the expansion of exclusive products as factors that could affect future results.
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