Boot Barn's stock sinks after it expects continued consumer caution in outlook
By Bill Peters
The Western-wear chain said trends have improved in recent weeks
Shares of Western-wear retailer Boot Barn Holdings Inc. slid after hours on Tuesday, after the chain forecast sales trends for the fiscal year ahead that were below Wall Street's expectations amid continuing tepid demand from shoppers.
The company said it expects fiscal 2025 sales of $1.766 billion to $1.8 billion, below the FactSet analyst forecast of $1.82 billion. Management said it expects a same-store-sales decline of around 1.6% to 3.6%, whereas the FactSet forecast called for a 0.6% dip in same-store sales.
Shares of Boot Barn (BOOT) fell 7% after hours.
"We expect the consumer to continue to be cautious for the foreseeable future," Boot Barn Chief Executive Jim Conroy said in a statement, though he noted that same-store sales at physical stores and online channels improved through April and May.
Demand for clothing has been hurt by higher prices for food and other essentials that have narrowed shoppers' priorities. However, some data show a bump in interest in cowboy hats, cowboy boots and other Western wear, thanks to Taylor Swift's Eras Tour and Beyonce's new country album, "Cowboy Carter."
Boot Barn has tried to open more stores even as sales fall. It launched 18 new locations during its fiscal fourth quarter, taking it to a total of 400.
During that period, Boot Barn's sales declined 8.7% year over year to $388.5 million, above the consensus analyst estimate of $385 million. Same-store sales fell 5.9%, not as bad as the 7.2% decline forecast by analysts.
Boot Barn reported net income of $29.4 million, or 96 cents a share, for its fourth quarter. That was lower than net income of $46.4 million, or $1.53 a share, in the year-earlier quarter.
-Bill Peters
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05-14-24 1756ET
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