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Boot Barn Holdings, Inc. (BOOT)·Q1 2026 Earnings Summary

Executive Summary

  • Boot Barn delivered a strong Q1 FY2026: revenue $504.1M (+19.1% YoY), EPS $1.74 (+38% YoY), consolidated SSS +9.4%, and gross margin +210bps to 39.1%; new stores (14 openings) and broad-based demand drove the outperformance .
  • Results beat Wall Street: revenue vs consensus $495.2M* and EPS vs $1.55*; both top-line and EPS surprises were driven by merchandise margin (+180bps) and expense discipline, with transactions up and broad category strength (notably denim) .
  • Management raised FY26 outlook (sales $2.10–$2.18B, EPS $5.80–$6.70) and introduced Q2 FY26 guidance (sales $487–$495M, EPS $1.19–$1.27), citing continued momentum and exclusive brands strategy amid tariff uncertainty .
  • Stock-relevant catalysts: evidence of sustained SSS strength into July, gross margin expansion, elevated exclusive brands penetration, and an updated FY26 guide (with second-half caution for tariffs) .

What Went Well and What Went Wrong

What Went Well

  • Broad-based demand and comps: consolidated SSS +9.4% with retail +9.5% and e‑commerce +9.3%; transactions drove growth and denim comped high teens, particularly women’s .
  • Margin execution: gross margin +210bps, driven by +180bps merchandise margin (better buying, lower freight, exclusive brands) and 30bps leverage in buying/occupancy/DC .
  • Strategic initiatives progress: new stores exceeded expectations (~$3.2M year-one revenue, ~<2-year payback), exclusive brands reached ~40.6% penetration, and omnichannel AI rollouts (AI-powered search, Cassidy assistant) enhanced customer experience .

Quotes:

  • “We are pleased with our strong start to fiscal 2026… we improved gross profit 210 basis points… fueled a 38% increase in earnings per diluted share.” – CEO John Hazen .
  • “Merchandise margin rate has increased ~630bps over the last six years… exclusive brand penetration increased 250bps to 40.6% of sales.” – CEO John Hazen .

What Went Wrong

  • Tariff headwinds expected in 2H: management maintained flat comps for Q3/Q4 and modeled merchandise margin pressure when tariffed goods flow through; exclusive brands will hold price “lower for longer” selectively, accepting margin rate give‑up to defend share .
  • Work boots underperformed relative to western categories; management not “declaring victory,” citing ongoing work to lift performance with brand marketing (Hawx, Cody James) and assortment optimization .
  • Effective tax rate ticked up (25.1% vs 22.9% LY) due to lower stock-based comp tax benefits; this partially tempered bottom-line flow‑through .

Financial Results

MetricQ1 2025Q4 2025Q1 2026
Revenue ($USD Millions)$423.386 $453.749 $504.067
Diluted EPS ($USD)$1.26 $1.22 $1.74
Gross Profit Margin %37.0% 37.1% 39.1%
SG&A % of Sales25.2% 26.2% 25.1%
Income from Operations Margin %11.9% 11.0% 14.0%
Consolidated SSS (%)1.4% 6.0% 9.4%
Stores Opened (count)11 21 14

Channel performance

MetricQ4 2025Q1 2026
Retail Stores SSS (%)5.5% 9.5%
E‑commerce SSS (%)9.8% 9.3%
E‑commerce as % of Net Sales9.9% 8.7%

Q1 FY2026 monthly cadence (company disclosed)

MetricApr FY26May FY26Jun FY26Q1 FY26 Total
Total Net Sales Growth (%)18.3% 21.5% 17.7% 19.1%
Retail Stores SSS (%)9.8% 11.0% 8.0% 9.5%
E‑commerce SSS (%)-0.4% 15.8% 12.3% 9.3%
E‑commerce as % of Net Sales8.4% 9.1% 8.7% 8.7%

Actuals vs S&P Global consensus (Q1 FY2026)

MetricConsensusActual
Revenue ($USD Millions)$495.170*$504.067
Diluted EPS ($USD)$1.55*$1.74

Estimates marked * are values retrieved from S&P Global.

KPIs and balance sheet

KPIQ4 2025Q1 2026
Cash ($USD Millions)$69.770 $95.319
Revolver Drawn$0 $0
Avg Inventory per Store YoY+5.7% +2.7%
Share RepurchaseAuthorization $200M ; none disclosed in Q477,959 shares for $12.5M
Weighted Avg Diluted Shares (mm)30.771 30.750
Store Count (EOP)459 473

Guidance Changes

MetricPeriodPrevious Guidance (5/14/25)Current Guidance (7/31/25)Change
New store openingsFY2665–70 65–70 Maintained
Total Sales ($B)FY26$2.070–$2.150 $2.100–$2.180 Raised
Consolidated SSS (%)FY26(2.0)% to +2.0% (0.5)% to +3.5% Raised
Merchandise Margin (% of sales)FY2649.8%–50.1% 49.9%–50.3% Raised (upper bound)
Gross Profit (% of sales)FY2636.1%–36.9% 36.4%–37.2% Raised
SG&A (% of sales)FY2625.1%–24.5% 25.0%–24.5% Slight leverage
Income from Operations (% of sales)FY2611.0%–12.4% 11.4%–12.7% Raised
Net Income ($M)FY26$169–$197 $178.0–$205.8 Raised
EPS (GAAP, $)FY26$5.50–$6.40 $5.80–$6.70 Raised
Effective Tax RateFY2626.0% 26.0% (remaining 9 months) Maintained
CapEx ($M)FY26$115–$120 $115–$120 Maintained
Total Sales ($M)Q2 FY26n/a$487–$495 New
Consolidated SSS (%)Q2 FY26n/a+4.5% to +6.5% New
EPS (GAAP, $)Q2 FY26n/a$1.19–$1.27 New

Earnings Call Themes & Trends

TopicPrevious Mentions (Q3 FY2025 and Q4 FY2025)Current Period (Q1 FY2026)Trend
AI/technology initiativesEmphasis on omnichannel, store fulfillment; piloting “Cassidy” in-store AI; digital momentum AI-powered search, AI for product copy and Cassidy assistant; >50% of online orders fulfilled by stores Continued build-out; more embedded AI
Supply chain & tariffsTariff mitigation plan; accelerated receipts; EB sourcing diversity (China down to ~12% FY26, ~5% 2H) Plan to reticket third-party mid‑single-digit MSRP by end of Aug; test EB price elasticity; 2H margin pressure expected Near-term margin tailwind in Q2; caution in 2H
Product performance (denim)Holiday execution and denim strength; women’s/mens’ western positive Denim comp high teens; women’s standout; broad-based category strength Sustained
Exclusive brands (EB)EB penetration ~38.6%; margin uplift ~1,000bps vs third-party; plan +100bps FY26 EB penetration ~40.6% in Q1; “lower for longer” pricing to gain share; goal to reach 50% in 5–6 years Accelerating EB penetration
Regional trends & storesNew stores comp waterfall strong; low cannibalization; store density scalable 14 openings; new stores exceed expectations across geographies; plan 65–70 in FY26 Expansion sustained
Regulatory/macro (tariffs)EPS guide embeds ~$8M tariff cost; 2H pressure; consumer sentiment risk Maintains 2H flat comps; evaluates EB pricing windows (Oct/Jan) Cautious stance maintained

Management Commentary

  • “New stores continue to exceed expectations… projected to generate approximately $3.2 million in annual revenue and pay back in less than two years… we believe we have the market potential to double our store count in the U.S. alone” – CEO John Hazen .
  • “Boot Barn now leverages AI to enhance product copy… support store associates through our Cassidy assistant… and power the new search experience… More than half of our online orders are being fulfilled by the stores” – CEO John Hazen .
  • “Exclusive brand penetration increased 250 basis points to 40.6%… merchandise margin rate has increased approximately 630 basis points over the last six years” – CEO John Hazen .
  • “We are increasing full-year guidance due to our first quarter results and the strong start to our second quarter… maintaining original guidance for the second half… assumes tariff-related pressure” – CFO Jim Watkins .

Q&A Highlights

  • Exclusive brands pricing & elasticity: Management will hold EB prices “lower for longer” in Oct/Jan windows, running a style-by-style elasticity test to gain share; EB target 50% penetration over 5–6 years .
  • Tariff timing & margin: Q2 margin tailwind as reticketed MSRP precedes full tariffed COGS flowing through; margin pressure likely to emerge into 2H .
  • Inventory health/markdowns: Inventory fresh; markdowns below last year and historical; sufficient inventory to meet guide even with upside .
  • New store cadence: 16 openings planned in Q2; total 65–70 in FY26 with prudent operational pacing .
  • Category commentary: Work boots modestly positive but still lag broader business; denim remains a standout with women’s strength; no major fashion shifts .

Estimates Context

  • Q1 FY2026 results beat Wall Street: revenue $504.1M vs $495.2M* and EPS $1.74 vs $1.55*; estimates based on 15 revenue and 14 EPS inputs* .
  • The beat was driven by transactions-led comps, EB penetration, and merchandise margin expansion; management raised FY26 guidance while keeping 2H caution for tariffs .

Estimates marked * are values retrieved from S&P Global.

Key Takeaways for Investors

  • Topline/EPS momentum with visible margin levers: continued full-price selling, buying scale, freight efficiencies, and rising EB penetration support durability .
  • Near-term setup favorable: Q2 guide implies revenue +14–16% and EPS +34% YoY, aided by timing tailwinds (MSRP reticketing ahead of tariffed COGS) .
  • 2H risk framework: management models flat comps and margin pressure from tariffs; monitoring EB pricing windows to defend share and optimize rate .
  • Store growth compounding: 65–70 openings FY26 (15% unit growth) with attractive unit economics ($3.2M year-one sales, ~<2-year payback) .
  • Exclusive brands as strategic moat: ~40.6% penetration with ~1,000bps margin uplift vs third-party; targeted marketing (Hawx, Cody James) and sourcing buildout underpin multi-year tailwinds .
  • Balance sheet flexibility: $95M cash and undrawn revolver; active $200M repurchase program commenced in Q1 (77,959 shares, $12.5M) .
  • Actionable: near-term trading could favor Q2 print; medium-term thesis depends on EB penetration, tariff mitigation efficacy, and sustaining transaction-led comps through broader macro uncertainty .