Executive Summary

Q4 FY25 net sales rose 16.8% to $453.7M, consolidated same-store sales grew 6.0%, and gross margin expanded 130 bps to 37.1%; diluted EPS was $1.22, up from $0.96 YoY .
Versus S&P Global consensus, BOOT modestly missed on both EPS ($1.22 vs $1.245*) and revenue ($453.7M vs $458.4M*); strength in merchandise margin was offset by SG&A deleverage and occupancy costs of new stores .
FY26 guidance initiated: sales $2.07–$2.15B (+8–13%), comps -2% to +2%, EPS $5.50–$6.40, with expected margin pressure in 2H from tariffs; Q1 FY26 guided sales $483–$491M and EPS $1.44–$1.52 .
Board authorized a $200M share repurchase program; management plans to execute ~¼ in FY26, providing capital return amid strong cash generation .

What Went Well and What Went Wrong

What Went Well

“Total revenue increased 17%… consolidated same-store sales increased 6%… fourth quarter merchandise margin expanded 210 bps” (CEO) .
“Merchandise margin increased… primarily the result of supply chain efficiencies, lower shrink expense, better buying economies of scale and growth in exclusive brand penetration” (CFO) .
Broad-based category strength: ladies’ western boots/apparel comped mid-teens; men’s western boots/apparel high single digits; denim mid-teens (CEO) .

What Went Wrong

SG&A rate deleveraged 10 bps on higher legal expenses and store payroll; buying/occupancy/distribution costs deleveraged 80 bps due to new store occupancy .
Tariff headwinds expected to impact 2H FY26; exclusive brands estimated ~$8M incremental cost, with potential demand elasticity on third-party price increases (CFO/CEO) .
Work boots comped low-single-digit negative; e-commerce showed volatility tied to promotional laps and a vendor dropship outage (CEO) .

Financial Results

Quarter-over-Quarter and Year-over-Year

Metric	Q2 FY25 (oldest)	Q3 FY25	Q4 FY25 (newest)
Revenue ($USD Millions)	$425.8	$608.2	$453.7
Diluted EPS ($)	$0.95	$2.43	$1.22
Gross Margin (%)	35.9%	39.3%	37.1%
SG&A as % of Sales	26.5%	22.9%	26.2%
Operating Margin (%)	9.4%	16.4%	11.0%

Q4 FY25 vs Prior Year and vs Estimates

Metric	Q4 FY24 (oldest)	Q4 FY25 (actual)	Wall St. Consensus (S&P Global)
Revenue ($USD Millions)	$388.5	$453.7	$458.4*
Diluted EPS ($)	$0.96	$1.22	$1.245*
Gross Margin (%)	35.9%	37.1%	—
Consolidated SSS (%)	(5.9%)	6.0%	—

Bold highlights: modest miss on revenue and EPS vs consensus in Q4 FY25 (actual below estimates)*.

Channel and KPIs

KPI	Q4 FY25
Retail Store SSS (%)	5.5%
E-commerce SSS (%)	9.8%
E-commerce as % of Net Sales	9.9%
Store Count (EOP)	459
Loyalty Program Members	9.6M (FY25)
Exclusive Brands Penetration	38.6% (FY25)
Cash & Equivalents ($MM)	$69.8
Revolver Drawn	$0
Avg. Inventory per Store (YoY)	+5.7%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Total Sales ($B)	FY26	N/A	$2.070–$2.150	New
Consolidated SSS (%)	FY26	N/A	(2.0)% to +2.0%	New
Merchandise Margin ($B / %)	FY26	N/A	$1.030–$1.077 / ~49.8–50.1%	New
Gross Profit ($MM / %)	FY26	N/A	$747–$793 / ~36.1–36.9%	New
SG&A ($MM / %)	FY26	N/A	$519–$527 / ~25.1–24.5%	New
Operating Income ($MM / %)	FY26	N/A	$228–$266 / ~11.0–12.4%	New
Net Income ($MM)	FY26	N/A	$169–$197	New
EPS (Diluted, $)	FY26	N/A	$5.50–$6.40	New
Effective Tax Rate (%)	FY26	N/A	26.0%	New
Capex ($MM)	FY26	N/A	$115–$120 (net of ~$35.5M allowances)	New
New Stores (Count)	FY26	N/A	65–70	New
Total Sales ($MM)	Q1 FY26	N/A	$483–$491	New
Consolidated SSS (%)	Q1 FY26	N/A	+4–6%	New
Merchandise Margin ($MM / %)	Q1 FY26	N/A	$250–$254 / ~51.7%	New
Gross Profit ($MM / %)	Q1 FY26	N/A	$183–$188 / ~37.9–38.2%	New
SG&A ($MM / %)	Q1 FY26	N/A	$122–$124 / ~25.3–25.2%	New
Operating Income ($MM / %)	Q1 FY26	N/A	$61–$64 / ~12.6–13.0%	New
EPS (Diluted, $)	Q1 FY26	N/A	$1.44–$1.52	New

Share Repurchase: $200M authorization; plan to execute ~¼ in FY26 .

Earnings Call Themes & Trends

Topic	Q2 FY25 (older)	Q3 FY25	Q4 FY25 (current)	Trend
AI/Technology initiatives	Advanced omni-tech; Chief Digital Officer appointed (press)	Omnichannel execution; DC efficiencies	In-store traffic counters; AI tools (Cassidy), Range Finder, WHIP endless aisle	Increasing digital enablement
Supply chain efficiencies	Margin aided by efficiencies	+130 bps merch margin; DC logistics gains	Further margin gains; lower shrink; vendor discounts	Sustained efficiency tailwind
Tariffs/Macro	Emerging discussion; Mexico/China exposure	Raised FY25 guide despite macro	FY26 guided with tariff headwinds; ~$8M EB COGS impact; re-sourcing and pre-buys	New 2H headwind
Product performance	Broad-based growth; work boots okay	Women’s/mens western strong; denim positive; work positive	Denim standout; women’s/mens western strong; work boots negative	Mix favoring western/denim
Regional trends	Store expansion across states	Footprint growth to 46 states	E-com halo from store openings; NY state e-com rising	Store-led e-com lift
Regulatory/legal	Higher legal expenses in Q2	CEO transition one-time benefit in Q3	SG&A legal costs contributed to deleverage	Normalizing SG&A in FY26
Exclusive brands (EB)	Penetration growth driver	+180 bps EB in Q3; long-term plan	EB at 38.6% FY25; 100 bps growth in FY26; margin mitigation vs tariffs	Strategic expansion

Management Commentary

CEO: “We are very pleased with the fiscal ’25 results… revenue increased to a record $1.9 billion… earnings per diluted share [up] 23% to $5.88” .
CFO: “Gross profit rate increased 130 basis points… due to a 210 basis point increase in merchandise margin rate… offset by 80 basis points of deleverage in buying, occupancy and distribution center costs” .
CEO: “We expect… merchandise margin growth in the first half… pressure in the second half as we begin to sell tariffed goods” .
CFO: “Tariff impact on the year [exclusive brands] around $8 million… third-party price increases mid-single digits embedded in outlook” .
CEO: “We will invest in the store experience… introduction of traffic counters… focus on converting traffic into sales” .

Q&A Highlights

Comps cadence: Early Q1 comps +9%; full Q1 guided +6%, with 2H comps expected to flatten on pricing/tariff elasticity .
Tariff impact and pricing power: ~$8M EB cost headwind; third-party vendor price increases mid-single digits; management to test price elasticity and lean on EB to mitigate .
SG&A leverage: FY26 SG&A expected to leverage at flat comp; normalization of legal/incentive costs and scale from new units .
Category/merch: Denim momentum; women’s/mens western strong; work boots soft; targeted campaigns to reinvigorate work .
E-commerce volatility: April weakness due to lapping prior-year promotion and vendor dropship systems upgrade; May bounce-back .
Store openings: 65–70 stores planned, broadly across legacy/new markets; Q1 cadence 10–12 openings .

Estimates Context

Metric	Q4 FY25 Actual	Consensus	# of Estimates	Result
Revenue ($USD Millions)	$453.7	$458.4*	15*	Miss*
Primary EPS (Diluted, $)	$1.22	$1.245*	14*	Miss*

Values retrieved from S&P Global.*

Where estimates may adjust: Potential downward revisions to 2H FY26 margin assumptions and comps given tariff-driven price elasticity; upside potential if price increases are absorbed better than modeled and EB penetration outperforms (management notes some upside optionality) .

Key Takeaways for Investors

Q4 delivered strong top-line growth and margin expansion; the modest miss vs consensus reflects SG&A/legal costs and new-store occupancy deleverage amid otherwise robust merchandise margin gains .
FY26 outlook is prudent with explicit tariff headwinds in 2H; H1 should benefit from pre-tariff inventory and EB penetration growth, setting up a two-speed year .
Share repurchase authorization ($200M) adds a tangible capital return lever; management intends to buy steadily through FY26, supported by operating cash flow .
Watch category mix: denim and women’s/mens western strength continue; work boots are a focal area for marketing and EB innovation (Hawx, Cody James) .
Operational investments (traffic counters, in-store AI tools, omnichannel capabilities) aim to lift conversion and profitability; expect SG&A leverage at flat comps in FY26 .
Tariff mitigation strategy (re-sourcing, factory cost reductions, selective pricing) plus EB growth should cushion margin pressure; monitor consumer elasticity and third-party MAP constraints .
Near-term trading: stock likely keyed to early FY26 comps/margin trajectory and buyback execution; medium-term thesis rests on new-store growth (65–70 FY26), EB-led margin expansion, and steady omni traffic conversion .

Boot Barn Holdings, Inc. (BOOT)·Q4 2025 Earnings Summary