Boot Barn (BOOT) Q2 2027 Earnings Report

The call was predominantly positive. Boot Barn delivered strong revenue, EPS, margin, new-store, cash-flow, and shareholder-return results, raised its store-opening and merchandise-margin outlook, and maintained confidence in its long-term growth algorithm. The principal challenges were moderating October comps, lower same-store sales guidance, weakness in western boots, declining traffic and transactions, slower e-commerce growth, and some cost deleverage. Management described targeted merchandising, marketing, and B2B initiatives intended to address these areas and expressed confidence in the holiday season and longer-term outlook.

For fiscal 27, Boot Barn increased its new-store plan from 70 stores to a range of 75 to 80 stores, while underwriting approximately $3.2 million in first year sales; at the high end of guidance, it expects total sales of $2.6 billion, representing 15% growth, same store sales to increase 2% including a 1.7% increase in retail store comps and 4% growth in ecommerce comps, merchandise margin of approximately 52.3% of sales, representing a 140 basis point year over year increase including 70 basis points from tariff refunds, 50 basis points of product margin expansion, and 20 basis points of freight improvement, gross profit rate of approximately 38.5%, 20 basis points of SG&A leverage, income from operations of $32 million or 14% of sales, net income of $272 million, earnings per diluted share growth of 22% to $9, net capital expenditures of $140 million, and an effective tax rate of 25.7% for the remainder of the fiscal year; for the third quarter, it expects total sales of $802 million, consolidated same store sales growth of 1%, merchandise margin of approximately 51.5%, gross profit rate of approximately 39.8%, SG&A of approximately 23.6% of sales, income from operations of $130 million or 16.2% of sales, and earnings per diluted share of $3.19 compared to $2.79 last year.