Boot Barn Holdings Inc (NYSE: BOOT) is having an overwhelmingly strong start to the trading session this morning after the company announced its earnings for the fourth fiscal quarter. Of course, the earnings were positive, leading to excitement among investors and sending the stock screaming for the top. Today, we’ll talk about:
- What we saw from earnings;
- what we’re seeing from BOOT as a result;
- and what we’ll be watching for ahead.
BOOT Heads Announces Earnings
As mentioned above, Boot Barn is having an incredibly strong day in the market today after the company announced earnings for the fourth fiscal quarter. Here’s what we saw from the report:
- Net Income – In terms of net income BOOT did overwhelmingly well. During the quarter, the company generated net income in the amount of $6.9 million. That works out to $0.24 per share. the figure showed strong year over year growth from net income in the amount of $2.6 million, which works out to $0.10 per share.
- Earnings – When it comes to adjusted earnings, the figure also came in at $0.24 per share. Analysts expected that earnings would come in at $0.18 per share.
- Revenue – Revenue also proved to be a big win for the company. During the quarter, the company generated revenue in the amount of $170.8 million. That figure also showed strong growth on a year over year basis from revenue in the amount of $163.6 million. Analysts expected that revenue would come in at $151.5 million.
In a statement, Jim Conroy, CEO at BOOT, had the following to offer:
We are very pleased with the top-line momentum our business experienced across most of the country both in store and online during the fourth quarter. Our investments in merchandising, marketing and omni-channel fueled double-digit gains in retail comparable sales and helped return our e-commerce business to double-digit growth as well. Importantly, we held true to our full-price selling model, which combined with a meaningful increase in our exclusive brand penetration, yielded a 90 basis point improvement in merchandise margin. Our strong sales and margin performance enabled us to exceed our earnings guidance for the quarter and further solidify our industry leading position.
I am equally excited about the business in April and May as our double-digit same store sales growth has continued. We are looking forward to fiscal 2019 and the opportunities we have to drive profitable growth, re-accelerate store expansion, build out our multi-brand e-commerce strategy, and further develop our exclusive brands.
I am excited to welcome Anne MacDonald to the Board of Directors. She brings a world-class marketing background that will enhance our ability to develop both the Boot Barn brand and each of our exclusive brands. Anne’s combination of company and agency experience will further enhance the composition of our Board as we continue to grow the Boot Barn business across the country. I also want to take this opportunity to thank Fred Simmons for his contributions since December 2011. Fred’s guidance and strategic counsel have helped lead the growth of Boot Barn into a national lifestyle brand with revenue growing 300% during his tenure. On a personal note, Fred has been inspiring, motivational and uplifting to me and the entire management team.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In this particular case, the news proved to be overwhelmingly positive. With such strong earnings results, it only makes sense that excited investors are sending Boot Barn toward the top today. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (11.20), the company is trading at $24.73 per share after a gain of $2.78 per share or 12.67% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on BOOT. In particular, we’re interested in following the company to see if the incredible growth seen in the quarter continues. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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