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Boot Barn Holdings, Inc. (BOOT)·Q2 2026 Earnings Summary

Executive Summary

  • Q2 FY2026 delivered broad-based strength: net sales $505.4M (+18.7% YoY), consolidated SSS +8.4%, diluted EPS $1.37 (+44% YoY) and operating margin expanded 180 bps to 11.2% .
  • Results were above Wall Street consensus: revenue beat by ~$10.9M and EPS by ~$0.09; EBITDA also exceeded consensus, reflecting merchandise margin expansion and disciplined SG&A . Values retrieved from S&P Global.*
  • Management raised FY2026 guidance across sales, comps, margin and EPS (high-end EPS to $7.15) and introduced Q3 guidance ($688–$700M sales; $2.47–$2.59 EPS), citing continued momentum and exclusive brands penetration (41%) .
  • Strategic catalyst: TAM updated to ~$58B and long-term U.S. store potential raised to 1,200 (from 900), underpinning a 12–15% annual unit growth framework and multi-year margin opportunity .
  • Near-term watch items: tariff pass-through, buying/occupancy leverage threshold (~7.5% comps this year), and macro “haircut” embedded in H2 guidance; management plans post-holiday selective exclusive-brand price increases to preserve margin .

What Went Well and What Went Wrong

What Went Well

  • Strong top-line outperformance: net sales +18.7% YoY to $505.4M; consolidated SSS +8.4% (retail +7.8%, e-comm +14.4%), with broad category/geography strength .
  • Margin expansion: merchandise margin +80 bps YoY; gross margin +50 bps to 36.4%; operating margin +180 bps to 11.2% on lower corporate/legal SG&A and exclusive brand penetration gains .
  • CEO confidence and strategic scope: “We delivered another strong quarter…” and “We now also believe we can operate 1,200 stores…” supporting sustained unit growth and TAM lift to ~$58B .

What Went Wrong

  • Buying/occupancy deleverage of ~30–70 bps tied to accelerated new store openings; management reiterated leverage point requires ~7–7.5% comps in current year .
  • Tariff headwinds necessitate selective price actions (third-party MSRPs up mid-single digits; exclusive brands price increases post-holiday), introducing elasticity risk and potential near-term margin pressure .
  • Macro caution persists: despite a strong October start (+9.3% SSS), guidance embeds a ~3% “haircut” to second-half comps given consumer sentiment uncertainty .

Financial Results

Quarterly Performance (oldest → newest)

MetricQ4 FY2025Q1 FY2026Q2 FY2026
Revenue ($USD Millions)$453.7 $504.1 $505.4
Gross Profit ($USD Millions)$168.6 $197.2 $184.1
Gross Margin %37.1% 39.1% 36.4%
SG&A (% of Sales)26.2% 25.1% 25.3%
Operating Income ($USD Millions)$49.7 $70.7 $56.4
Operating Margin %11.0% 14.0% 11.2%
Net Income ($USD Millions)$37.5 $53.4 $42.2
Diluted EPS ($USD)$1.22 $1.74 $1.37

Q2 FY2026 Actual vs Prior Year vs Consensus

MetricQ2 FY2025Q2 FY2026 ActualQ2 FY2026 Consensus
Revenue ($USD Millions)$425.8 $505.4 $494.4*
Diluted EPS ($USD)$0.95 $1.37 $1.277*
EBITDA ($USD Millions)N/A$75.9*$72.8*

Values retrieved from S&P Global.*

Sales by Channel and Mix (oldest → newest)

KPIQ4 FY2025Q1 FY2026Q2 FY2026
Consolidated SSS %6.0% 9.4% 8.4%
Retail Store SSS %5.5% 9.5% 7.8%
E-commerce SSS %9.8% 9.3% 14.4%
E-commerce % of Net Sales9.9% 8.7% 9.3%

Operating KPIs

KPI (Q2 FY2026 unless noted)Value
Exclusive Brands Penetration41% of sales
Merchandise Margin YoY Change+80 bps
Store Openings in Quarter16 (EOP: 489 stores)
Cash & Cash Equivalents$64.7M
Revolver$0 drawn on $250M facility
Inventory per Store (SS basis)~+1.0% YoY
Share Repurchases72,794 shares; $12.5M in Q2

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
Total Sales ($B)FY2026$2.180 $2.235 (high-end of $2.197–$2.235) Raised
Consolidated SSS %FY20263.5% 6.0% (range 4.0%–6.0%) Raised
Store SSS %FY20263.0% 5.3% (range 3.3%–5.3%) Raised
E-commerce SSS %FY20268.5% 13.0% (range 11.0%–13.0%) Raised
Merchandise Margin %FY202650.3% 50.6% (range 50.3%–50.6%) Raised
Gross Profit % of SalesFY202637.2% 37.7% (range 37.2%–37.7%) Raised
SG&A % of SalesFY202624.5% 24.5% (range 24.6%–24.5%) Maintained (high-end)
Operating Income %FY202612.7% 13.2% (range 12.6%–13.2%) Raised
Net Income ($M)FY2026$206.0 $219.6 (range $207.2–$219.6) Raised
EPS (Diluted)FY2026$6.70 $7.15 (range $6.75–$7.15) Raised
Store Openings (#)FY202665–70 70 Raised (to upper end)
Capex ($M)FY2026$115–$120 $125–$130 Raised
Effective Tax RateFY202626% 26% (remaining six months) Maintained
Total Sales ($M)Q3 FY2026N/A$688–$700 New
EPS (Diluted)Q3 FY2026N/A$2.47–$2.59 New
Gross Profit % of SalesQ3 FY2026N/A38.6%–38.8% New

Note: Prior-year Q3 benefited ~$6.7M in SG&A/operating income and ~$0.22 in EPS due to former CEO resignation (non-deductible), which management highlighted for comparability .

Earnings Call Themes & Trends

TopicPrevious Mentions (Q4 FY2025)Previous Mentions (Q1 FY2026)Current Period (Q2 FY2026)Trend
AI/TechnologyPiloting “Cassidy” in-store consumer AI; omni capabilities (BOPIS, endless aisle) Rolled out AI-powered search; Cassidy supports associates; multimedia training Enhanced search, product copy; Cassidy; brand sites (Hawx, Cody James) driving new customers Expanding adoption, measurable e-comm lift
Supply Chain/TariffsFY2026 guidance contemplated tariffs; mitigation strategies and country resourcing mix Third-party MSRPs reticketed mid-single digits; exclusive brands “lower-for-longer” pricing test Post-holiday style-by-style exclusive brand price increases; factory cost mitigation; elasticity tracking Managed pass-through; margin preservation focus
Product Performance (Denim, Ladies)Strength across categories; exclusive brands expansion Denim high-teens; ladies mid-teens; men high-single digits Denim remains destination; women’s denim execution push into holiday Continued outperformance; women’s focus
Regional TrendsBroad-based growth (no specific geographies) Broad strength; early “macro haircut” applied to H2 Widespread growth; October comps strong; cautious macro stance Stable breadth; conservative H2 planning
Regulatory/LegalNone specific; reiterated risk factor backdrop None specific beyond tariffs None specific beyond tariffs Tariffs remain key external variable
Exclusive Brands StrategyEB ~38.6% FY2025; ~1,000 bps margin vs third-party EB 40.6%; dedicated Hawx site/marketing; plan for Cody James EB 41%; Cody James site launched; plan for Cheyenne post-holiday; long-term target 50% Penetration rising; DTC storytelling fueling growth

Management Commentary

  • CEO: “We expanded our merchandise margin by 80 basis points… which drove a 41% improvement in operating income and a 180 basis-point increase in operating margin to 11.2%.”
  • CEO: “Our TAM is now estimated to be approximately $58 billion… we believe we can operate 1,200 stores across the United States.”
  • CFO: “We expect earnings per diluted share to be $7.15… income from operations $294 million, or 13.2% of sales” (FY26 high end) .
  • CEO on pricing and tariffs: exclusive brands price increases to be implemented post-holiday “style by style to preserve the rate” .

Q&A Highlights

  • Consensus bridge and macro “haircut”: Management applied ~3% haircut to store comps across H2 to reflect macro uncertainty despite strong October (+9.3% consolidated SSS) .
  • Store potential and unit economics: Updated store count potential to 1,200; new stores average ~$3.2M sales, ~53% year-1 cash-on-cash; pipeline robust with 25 openings in Q3 and 15 in Q4 .
  • Tariff elasticity and pricing actions: Third-party MSRPs up mid-single digits; exclusive brands price increases deferred to post-holiday; factories collaborating on cost reductions and re-sourcing .
  • Occupancy leverage threshold: Buying/occupancy leverage point ~7–7.5% comps in FY2026 due to accelerated openings; may ease to ~6% over next 1–2 years .
  • E-commerce momentum drivers: AI search enhancements, paid channels (Meta/Google), organic traffic and exclusive-brand sites contributed to +24% October e-comm SSS .

Estimates Context

  • Q2 FY2026 vs Consensus: revenue $505.4M actual vs $494.4M consensus*, EPS $1.37 actual vs $1.277 consensus*, EBITDA $75.9M actual* vs $72.8M consensus* . Values retrieved from S&P Global.*
  • Q3 FY2026 outlook vs Consensus: company guides revenue $688–$700M, EPS $2.47–$2.59; consensus revenue ~$700.0M* and EPS ~$2.576*, implying in-line to slight upside at guidance midpoints . Values retrieved from S&P Global.*
  • Target Price Consensus Mean: ~$227.31* (unchanged across periods). Values retrieved from S&P Global.*

Where estimates may adjust: upward revisions likely to FY2026 EPS, sales, and gross margin trajectories given raised guidance and stronger e-commerce/EB mix, partly offset by tariff-related cost normalization and occupancy deleverage in Q3 .

Key Takeaways for Investors

  • Beat and raise quarter: Q2 revenue/EPS/EBITDA exceeded consensus; FY2026 guidance raised across sales, comps, margin, and EPS, supporting near-term sentiment and medium-term compounding . Values retrieved from S&P Global.*
  • Strategic acceleration: TAM to ~$58B and store potential to 1,200 materially expands runway; unit growth 12–15% per year alongside EB penetration gains underpin margin targets .
  • Margin durability: EB penetration (41%) and AI/omni enhancements support merchandise margin amid tariff pass-through; watch selective EB pricing post-holiday and H2 buy/occupancy leverage .
  • Holiday setup solid: strong October start (+9.3% consolidated SSS) and Q3 guide imply resilient demand; note prior-year Q3 non-recurring benefit adjustments when modeling YoY comps .
  • Trading lens: Narrative catalysts include beat/raise, TAM/store potential uplift, and EB/AI execution; risks center on tariffs, H2 macro “haircut,” and occupancy deleverage from accelerated openings .
  • Watch KPIs: exclusive brands penetration trajectory, e-comm SSS, denim/women’s mix, and store opening cadence; any elasticity effects post-holiday price actions .
  • FY target track: High-end EPS raised to $7.15 with gross margin 37.7% and operating margin 13.2%—execution on Q3/Q4 comps and occupancy leverage is key to sustaining this trajectory .
Sources: Company press release and 8-K (Q2 FY2026) **[1610250_cad92b16f0c743979198246bd5f8d970_0]** **[1610250_cad92b16f0c743979198246bd5f8d970_1]** **[1610250_cad92b16f0c743979198246bd5f8d970_3]** **[1610250_cad92b16f0c743979198246bd5f8d970_4]** **[1610250_cad92b16f0c743979198246bd5f8d970_7]** **[1610250_0001104659-25-103720_boot-20251029xex99d1.htm:1]** **[1610250_0001104659-25-103720_boot-20251029xex99d1.htm:2]** **[1610250_0001104659-25-103720_boot-20251029xex99d1.htm:3]** **[1610250_0001104659-25-103720_boot-20251029xex99d1.htm:4]** **[1610250_0001104659-25-103720_boot-20251029xex99d1.htm:7]** **[1610250_0001104659-25-103720_boot-20251029xex99d1.htm:8]** **[1610250_0001104659-25-103720_boot-20251029xex99d1.htm:9]**; Q2 FY2026 earnings call transcript **[0001610250_2212831_1]** **[0001610250_2212831_2]** **[0001610250_2212831_3]** **[0001610250_2212831_4]** **[0001610250_2212831_5]** **[0001610250_2212831_6]** **[0001610250_2212831_7]** **[0001610250_2212831_8]** **[0001610250_2212831_9]** **[0001610250_2212831_10]** **[0001610250_2212831_11]** **[0001610250_2212831_12]** **[0001610250_2212831_13]** **[0001610250_2212831_14]** **[0001610250_2212831_16]** **[0001610250_2212831_17]**; Q1 FY2026 press release and call **[1610250_2f1740d320f24e83a48fd72cbd55e594_0]** **[1610250_2f1740d320f24e83a48fd72cbd55e594_1]** **[1610250_2f1740d320f24e83a48fd72cbd55e594_2]** **[1610250_2f1740d320f24e83a48fd72cbd55e594_3]** **[1610250_2f1740d320f24e83a48fd72cbd55e594_5]** **[1610250_2f1740d320f24e83a48fd72cbd55e594_8]** **[0001610250_2294093_1]** **[0001610250_2294093_5]** **[0001610250_2294093_8]**; Q4 FY2025 8-K and supplemental presentation **[1610250_0001558370-25-007745_boot-20250514xex99d1.htm:0]** **[1610250_0001558370-25-007745_boot-20250514xex99d1.htm:1]** **[1610250_0001558370-25-007745_boot-20250514xex99d1.htm:2]** **[1610250_0001558370-25-007745_boot-20250514xex99d1.htm:3]** **[1610250_0001558370-25-007745_boot-20250514xex99d1.htm:7]** **[1610250_0001558370-25-007745_boot-20250514xex99d1.htm:8]** **[1610250_0001558370-25-007745_boot-20250514xex99d1.htm:9]** **[1610250_0001558370-25-007745_boot-20250514xex99d2.htm:4]** **[1610250_0001558370-25-007745_boot-20250514xex99d2.htm:5]** **[1610250_0001558370-25-007745_boot-20250514xex99d2.htm:6]** **[1610250_0001558370-25-007745_boot-20250514xex99d2.htm:7]**. 
S&P Global disclaimer: All consensus and estimate values marked with an asterisk (*) are retrieved from S&P Global.