Will Boot Barn Holdings Inc. (NYSE: BOOT) Steal Your Fortune?


Amounting expenses offset sales improvement at Boot Barn Holdings Inc (NYSE: BOOT), pushing the company to post a weaker EPS. But management wants you to believe all is not lost. The company continued to executive toward its long-term goal in F4Q2016 with net sales going up relative to a year ago.

According to Boot Barn Holdings Inc (NYSE: BOOT)’s CEO, Jim Conroy, there is no doubt that F4Q2016 was a challenging period of the company. Conroy seems puts blame on the lower commodity prices that have tempered with people’s incomes in the company’s key markets, thus weakening demand for the company’s products. A wave of economic slowdown that has been spreading abroad from China can also be blamed for Boot’s tepid F4Q2016 results.

However, management believes that the light at the end of the dark tunnel is burning brighter by each passing day. For example, the company drew closer to its long-term goals in F4Q2016 as it continued to optimize its store footprint and deepen penetration of its high-margin private brand.

E-commerce efforts for Boot Barn Holdings Inc (NYSE: BOOT)

The completion of the acquisition of Sheplers was also highlight by management as a milestone attained during F2016. For example, the acquisition enabled the company to expand its market share and boosted its e-commerce efforts.

Therefore, Boot Barn Holdings Inc (NYSE: BOOT) has determined that investment in omni-channel systems and boosting marketing strategies and inventory levels will pave the way for long-term prosperity.

What transpired in F4Q2016?

Boot Barn Holdings Inc. (NYSE: BOOT) generated net sales of $149.5 million during F4Q2016, an increase of 45% over the same period a year earlier. The acquisition of Sheplers and the opening of new stores during the quarter support the topline gain. Boot opened four new stores in F4Q2016 and 22 new stores in the whole of F2016. But it also closed some stores as part of the store optimization measures.

Coming to the bottom-line, Boot Barn Holdings Inc. (NYSE: BOOT) posted adjusted F4Q2016 EPS of $0.09, down from $0.17 in the corresponding quarter of F2015. The decrease in adjusted EPS was caused by a spike in interest expenses.


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