US' Boot Barn Q2 sales jump 18.7%, expands US store potential to 1,200

The company also announced an increased long-term store potential of 1,200 locations across the United States, up from its earlier estimate of 900.

The gross profit expanded 20.4 per cent to $184.1 million, representing 36.4 per cent of net sales, up 50 basis points (bps) from the prior-year period. The improvement was mainly attributed to an 80 bps increase in merchandise margin, driven by economies of scale in purchasing and higher exclusive-brand penetration, partially offset by new-store occupancy costs, Boot Barn said in a press release.

The selling, general, and administrative (SG&A) expenses stood at $127.7 million, or 25.3 per cent of sales, compared to 26.5 per cent last year, reflecting leverage from higher sales and lower corporate and legal costs. Operating income grew 41 per cent to $56.4 million, representing an operating margin of 11.2 per cent, up from 9.4 per cent a year ago.

The net income for the quarter rose to $42.2 million, or $1.37 per diluted share, compared to $29.4 million, or $0.95 per diluted share, in Q2 FY25. The effective tax rate decreased to 25.8 per cent from 27.4 per cent, aided by reduced non-deductible expenses.

The e-commerce sales accounted for 9.3 per cent of total net sales during the quarter, underscoring the brand’s growing digital momentum. Preliminary data for October 2025 showed consolidated same-store sales rising 9.3 per cent, with e-commerce up 24.1 per cent.

“We delivered another strong quarter with high single-digit consolidated same-store sales growth and 19 per cent total sales growth, demonstrating the continued resilience and broad appeal of our brand. This strength was evident across all major merchandise categories and geographies, with both our retail stores and e-commerce channels performing well. Importantly, we expanded our merchandise margin by 80 basis points, while maintaining disciplined expense control, which drove a 41 per cent improvement in operating income and a 180-basis-point increase in operating margin to 11.2 per cent,” said John Hazen, chief executive officer (CEO) at Boot Barn Holdings.

“Following collaborative work with a third party, we are excited to announce that our updated market analysis reveals a significantly expanded Total Addressable Market (TAM) and store count potential. Our TAM is now estimated to be $58 billion, with market growth across all categories,” added Hazen.

For the first six months (6M) of FY26, Boot Barn’s net sales increased 18.9 per cent to $1.009 billion, driven by an 8.9 per cent consolidated same-store sales gain. Retail same-store sales were up 8.6 per cent, while e-commerce grew 11.8 per cent. The gross profit increased to $381.4 million (37.8 per cent of sales), up from $309.6 million (36.5 per cent) last year.

Operating income in 6M rose 40.9 per cent to $127.1 million, or 12.6 per cent of sales, compared to $90.2 million, or 10.6 per cent, in the previous year. Net income climbed to $95.6 million ($3.11 per diluted share) from $68.3 million ($2.21 per diluted share).

As of September 27, 2025, the company held $65 million in cash and had no outstanding borrowings under its $250 million revolving credit facility. Average inventory per store increased approximately 1 per cent on a same-store basis.

For the fiscal ending March 28, 2026, Boot Barn has raised its full-year outlook, projecting net sales between $2.197 billion and $2.235 billion, representing growth of 15 to 17 per cent YoY. Same-store sales are expected to rise between 4 and 6 per cent, driven by retail growth of 3.3 to 5.3 per cent and e-commerce growth of 11 to 13 per cent.

Gross profit is forecast to range between $818 million and $842 million, equating to 37.2 to 37.7 per cent of sales, while operating income is anticipated between $277 million and $294 million, representing a margin of 12.6 to 13.2 per cent.

The net income is expected to reach between $207.2 million and $219.6 million, translating to diluted earnings per share (EPS) of $6.75 to $7.15. The company plans capital expenditures of $125 to $130 million and intends to open 70 new stores during the fiscal year.

For the third quarter (Q3) ending December 27, 2025, Boot Barn anticipates net sales of $688 to $700 million, up 13 to 15 per cent YoY, with same-store sales growth of 2.5 to 4.5 per cent. The gross profit is expected to be between $265 million and $272 million (38.6 to 38.8 per cent of sales), operating income between $102 million and $107 million (14.8 to 15.3 per cent margin), and diluted EPS between $2.47 and $2.59.

ALCHEMPro News Desk (SG)