Sign in

You're signed outSign in or to get full access.

BB

Boot Barn Holdings, Inc. (BOOT)·Q3 2025 Earnings Summary

Executive Summary

  • Q3 FY2025 delivered broad-based strength: net sales $608.2M (+16.9% YoY), consolidated SSS +8.6%, merchandise margin +130 bps, and diluted EPS $2.43; EPS was $0.36 above the high end of company guidance and included ~$0.22 benefit from the CEO transition .
  • Gross margin expanded to 39.3% (+100 bps YoY), driven by supply chain efficiencies, better buying economies of scale, and increased exclusive brand penetration; SG&A leverage benefited from a $6.7M reversal tied to the CEO transition .
  • FY2025 guidance was raised: sales $1.908–$1.918B, EPS $5.81–$5.90, same-store sales +5.4%–+5.9%; Q4 guidance calls for sales $451–$460M and EPS $1.17–$1.26 .
  • Stock-relevant narrative: sustained comp acceleration post-holiday (January consolidated SSS +8.3%), margin expansion durability, and a reaffirmed 15% new store growth cadence (21 openings in Q4; 60 for FY25) .

What Went Well and What Went Wrong

What Went Well

  • EPS and revenue beat company’s high-end guidance materially: $2.43 vs $2.07 and $608.2M vs $595M; operating income $99.5M vs $87.3M as merchandise margin expanded 130 bps .
  • Broad-based category strength and e-commerce acceleration (e-comm SSS +11.1%) with omnichannel execution contributing (half of online orders shipped from stores in peak weeks) .
  • Strategic drivers: supply chain efficiencies (Kansas City DC, vendor discounts), exclusive brand penetration (+180 bps YoY in Q3) and disciplined full-price selling supporting margin expansion .

What Went Wrong

  • Reported EPS benefited from one-time CEO transition effects (approx. $0.22 per share; $6.7M SG&A reversal), which are non-recurring and not tax-deductible, complicating run-rate comparability .
  • Buying/occupancy/distribution deleverage of ~30 bps persisted given the cadence of new store openings; management reiterated comp thresholds needed to leverage B&O/DC costs .
  • Work boots performance trailed Western categories; management highlighted targeted actions to improve brand and style mix (lace-up vs. pull-on) and called out Hawx as a key opportunity .

Financial Results

MetricQ3 2024Q1 2025Q2 2025Q3 2025
Net Sales ($USD Millions)$520.4 $423.4 $425.8 $608.2
Gross Profit ($USD Millions)$199.1 $156.7 $152.9 $238.9
Gross Margin %38.3% 37.0% 35.9% 39.3%
Income from Operations ($USD Millions)$75.1 $50.2 $40.0 $99.5
Operating Margin %14.4% 11.9% 9.4% 16.4%
Net Income ($USD Millions)$55.6 $38.9 $29.4 $75.1
Diluted EPS ($USD)$1.81 $1.26 $0.95 $2.43
Q3 FY2025 Actual vs Company Guidance High EndGuidance High-EndActualBeat/(Miss)
Net Sales ($USD Millions)$595.0 $608.2 +$13.2
Income from Operations ($USD Millions)$87.3 $99.5 +$12.2
Diluted EPS ($USD)$2.07 $2.43 +$0.36
Channel & SSS KPIsQ1 2025Q2 2025Q3 2025
Consolidated SSS %+1.4% +4.9% +8.6%
Store SSS %+0.8% +4.3% +8.2%
E-commerce SSS %+6.7% +10.1% +11.1%
E-commerce % of Net Sales9.5% 9.5% 12.2%
Operating KPIsQ1 2025Q2 2025Q3 2025
Store Count (EOP)411 425 438
New Stores Opened11 15 13
Cash ($USD Millions)$83 $37 $153
Inventory Same-Store Change (%)~+6% ~+10.5% ~+1%
Active Loyalty Customers (Millions)——9.4

Guidance Changes

MetricPeriodPrevious Guidance (High End)Current Guidance (High End)Change
Total Sales ($USD Billions)FY2025$1.907 $1.918 Raised
Consolidated SSS %FY20255.0% 5.9% Raised
Store SSS %FY20254.5% 5.4% Raised
E-commerce SSS %FY20259.5% 10.2% Raised
Gross Profit ($USD Millions; rate)FY2025$713.4; 37.4% $716.3; 37.4% Raised
SG&A ($USD Millions; rate)FY2025$480.4; 25.2% $475.2; 24.8% Lowered
Income from Operations ($USD Millions; rate)FY2025$233.0; 12.2% $241.1; 12.6% Raised
Net Income ($USD Millions)FY2025$174.0 $182.2 Raised
EPS (Diluted, $)FY2025$5.60 $5.90 Raised
New Store Openings (Units)FY202560 60 Maintained
Capex ($USD Millions)FY2025$120 $120 Maintained
MetricPeriodCurrent GuidanceNotes
Total Sales ($USD Millions)Q4 FY2025$451–$460 16.1%–18.4% YoY growth
Consolidated SSS %Q4 FY20255.3%–7.8% Stores 4.7%–7.2%; e-comm 9.6%–12.1%
Gross Profit ($USD Millions; rate)Q4 FY2025$163.1–$167.8; 36.2%–36.5%
SG&A ($USD Millions; rate)Q4 FY2025$115.4–$116.4; 25.6%–25.3%
Income from Operations ($USD Millions; rate)Q4 FY2025$47.7–$51.4; 10.6%–11.2%
EPS (Diluted, $)Q4 FY2025$1.17–$1.26 Tax rate 25.4%
New Store Openings (Units)Q4 FY202521 60 total in FY2025

Earnings Call Themes & Trends

TopicPrevious Mentions (Q1 & Q2)Current Period (Q3)Trend
AI/technology initiativesBoot Barn app ~10% of online sales; piloting “Cassidy” in-store AI; omnichannel tools (BOPIS, ship-from-store) .Continued omnichannel strength; half of online orders shipped from stores during peak weeks; expanded Connected TV; artist collaborations to drive traffic .Expanding digital/omnichannel capabilities to support traffic and conversion .
Supply chain efficienciesMargin expansion driven by renegotiated logistics and DC efficiencies; Kansas City DC ramp; vendor discounts .Q3 merchandise margin +130 bps; Q4 guided +120 bps; management expects ~10 bps supply chain tailwind next year (vs ~70 bps FY25) .Durable but moderating tailwind; focus shifts to vendor scale/discounts and exclusive brands .
Tariffs/macroElection/holiday timing modeled into guidance; China exposure ~30% on-order; Mexico ~25% exclusive brands .Mexico exposure reiterated; plan to maintain margins via vendor concessions, supply chain efficiencies, and selective pass-through if tariffs rise .Monitoring; playbook from prior tariff cycle in place .
Product performanceSequential improvement across categories; ladies Western apparel/boots turned positive; denim strong .Broad-based strength led by ladies Western boots/apparel (low double-digit), men’s Western (high single-digit), denim low double-digit; work boots low single-digit .Continued improvement in Western categories; work boots a focus area .
Regional trendsAll regions positive and strengthening .Broad-based growth across geographies; store pipeline healthy; density strategy with limited cannibalization .Stable nationwide strength; disciplined expansion .
Promotional stanceEveryday low price; modest promotions consistent with prior year .Full-price selling maintained; margin expansion supported .Consistent discipline .
SG&A and one-time itemsElevated incentives and legal expenses impacted leverage; comp thresholds to leverage SG&A .$6.7M SG&A reversal (CEO), non-deductible; onetime legal settlement won’t repeat next year; HQ lease step-up normalizes .Near-term SG&A optics benefit; normalization expected .

Management Commentary

  • “Revenue increased by 17%, including consolidated same-store sales growth of 8.6%... merchandise margin expanded 130 basis points... EPS of $2.43... approximately $0.22 benefit related to the CEO transition” — John Hazen, Interim CEO .
  • “E-commerce comp sales grew 11.1%... during the critical weeks between Black Friday and Christmas, we were able to ship approximately half of our online orders from our stores” — John Hazen .
  • “We expect gross profit [Q4]... an estimated 120 bps increase in merchandise margin... For the full fiscal year... merchandise margin [up] driven by supply chain efficiencies, better buying economies of scale and growth in exclusive brand penetration” — Jim Watkins, CFO .
  • “Exclusive brand penetration increased by 180 basis points [Q3]... we believe we can achieve merchandise margin expansion through... supply chain efficiencies... better buying economies of scale... growth in exclusive brand penetration” — John Hazen .

Q&A Highlights

  • January trends: consolidated SSS +8.3% (stores +7.2%, e-comm +17.1%); momentum in men’s and women’s Western boots/apparel; AUR flat, UPT up, comps driven by transactions .
  • Merchandise margin runway: Q4 merch margin guided +120 bps, roughly half from supply chain efficiencies and balance from buying scale/vendor discounts and ~200 bps exclusive penetration; supply chain tailwind next year likely ~10 bps (vs ~70 bps FY25) .
  • Tariff exposure: ~25% of exclusive brands sourced from Mexico; plan involves vendor concessions, supply chain efficiencies and selective pricing to maintain margins if tariffs rise .
  • Store density/cannibalization: urban/dense areas can support stores within 10 miles; deals modeled with cannibalization and still clear payback; second-year comps for new stores outperform chain average by ~5 points .
  • Assortment focus: stability in Western aesthetic; targeted tweaks to broaden “just country” TAM; work boots to improve (brand/style mix) .

Estimates Context

  • S&P Global consensus estimates were unavailable at the time of analysis due to a daily request limit; therefore, we cannot provide Wall Street EPS/revenue consensus comparisons for Q3 FY2025. The company exceeded its own guidance high end on net sales ($608.2M vs $595M), operating income ($99.5M vs $87.3M), and EPS ($2.43 vs $2.07), and raised FY2025 guidance (EPS high end to $5.90) .
  • Given the raised FY outlook and Q3 beats, consensus estimates are likely to adjust upward on revenue, margins, and EPS trajectory, with management highlighting durable drivers (exclusive brands, buying scale, omnichannel execution) .

Key Takeaways for Investors

  • Q3 was a high-quality beat: strong comps, broad category/geography strength, and material margin expansion with disciplined full-price selling; EPS above guidance by $0.36, even excluding non-recurring CEO-related benefit the beat was meaningful .
  • Margin drivers look durable: supply chain efficiencies are moderating but ongoing; vendor discounts and exclusive brands (penetration up 180 bps) support multi-year merchandise margin gains .
  • Omnichannel continues to augment growth and profitability (store-fulfilled online orders, targeted digital acquisition via Google’s P-MAX, Connected TV), reinforcing traffic and conversion across channels .
  • Store growth cadence (15% new units) remains intact with limited cannibalization and attractive first-year economics (~$3M per new store; ~60% cash-on-cash); 21 openings in Q4, 60 in FY25 .
  • Category mix: Western footwear/apparel and denim are core growth engines; work boots are an opportunity area; assortment tweaks aim to broaden TAM (the “just country” customer) without chasing fashion risk .
  • SG&A optics: Q3 benefited from a non-recurring $6.7M reversal tied to CEO transition; legal settlement charge should not repeat next year; HQ lease step-up normalizes — model forward without these one-time effects .
  • Macro/trade watch: ~25% Mexico and ~30% China on-order exposure; playbook includes vendor pricing concessions, supply chain efficiencies, and selective pass-through to preserve margins if tariffs rise .

Appendix: Additional Data Points

  • Sales by Channel detail (quarter and intra-quarter): e-commerce was 12.2% of Q3 net sales; Fiscal Jan preliminary: consolidated SSS +8.3%, stores +7.2%, e-comm +17.1% .
  • Balance sheet highlights: $153M cash, zero revolver draw; inventory +23% YoY, ~+1% same-store in Q3 (positioned to support demand without elevated markdown risk) .

Sources: Q3 FY2025 press release and 8-K including Exhibit 99.1 and 99.2 ; Q3 FY2025 earnings call transcript ; Preliminary Q3 press release and reporting schedule ; Q2 FY2025 press release and call ; Q1 FY2025 press release .