American firm Boot Barn's net sales ascend 5.7% in H1 FY24

Gross profit for H1 FY24 was reported at $275.9 million, constituting 36.4 per cent of net sales, which is a slight decrease from 37.2 per cent in the prior-year period. Selling, general, and administrative expenses saw a rise to $191.1 million, or 25.2 per cent of net sales, compared to $170.4 million, or 23.7 per cent of net sales in H1 FY23.

This increase in expenses contributed to a downturn in income from operations, which decreased by $11.8 million to $84.8 million, representing 11.2 per cent of net sales, compared to 13.5 per cent in the prior-year period. Net income also saw a downturn, decreasing to $61.9 million, or $2.03 per diluted share, compared to $71.4 million, or $2.35 per diluted share, in H1 FY23, the company said in a press release.

The second quarter of fiscal 2024 (Q2 FY24) alone mirrored the half-year trend, with net sales growing 6.5 per cent to $374.5 million from $351.5 million in Q2 FY23. However, consolidated same store sales decreased by 4.8 per cent, with retail store same store sales and e-commerce same store sales decreasing by 3.8 per cent and 11.7 per cent, respectively.

Gross profit for Q2 FY24 was at $133.9 million, making up 35.8 per cent of net sales, a decline from 36.7 per cent in the same quarter of the previous year. Selling, general and administrative expenses increased, and income from operations fell by $5.6 million to $38.6 million, or 10.3 per cent of net sales. Net income for the quarter was reported at $27.7 million, or $0.90 per diluted share, a decrease from $32.1 million, or $1.06 per diluted share in Q2 FY23.

Jim Conroy, president and chief executive officer, said: “I am pleased with our second quarter results which included solid sales growth, merchandise margin expansion and earnings achievement which was at the high end of our guidance range. We opened 10 new stores in the quarter and continue to be encouraged by the new store performance across the country. Exclusive brand penetration expanded more than 600 basis points as our brands are resonating well with the consumer. Our average store sales volume remains at elevated levels with a modest 3.8 per cent decline in retail store same store sales for the quarter.

Throughout the quarter, we saw a sequential decline in same store sales, which we believe to be driven by a macro pull back in consumer demand. We believe that our inventory levels and expense structure are well positioned as we enter the holiday season.”

ALCHEMPro News Desk (DP)