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Category: Stock Market and Boot Barn
Date: 31 October 2019 Stock Price: $37.33 We take a look at the 2nd quarter earnings report of their 2020 fiscal year of Boot Barn a company that sells western and work-related footwear and apparel.
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About Boot Barn
Boot Barn is the nation’s leading lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children. The Company offers its loyal customer base a wide selection of work and lifestyle brands. Boot Barn now operates 240 stores in 33 states, in addition to an e-commerce channel, including both www.bootbarn.com and www.sheplers.com.
Financial overview of Boot Barn 2nd quarter 2020 earnings results
Numbers we are interested in: (for the quarter)
- Sales: $187.183 million (down from $168.109 million for the same quarter of the previous year)
- Net sales increased by 11.34% over the last 12 months
- Cost of goods solds: $127.845 million (up from $117.191 million for the same quarter of the previous year)
- Cost of goods sold increased by 9.09% over the last 12 months
- Net income: $7.680 million (up from $4.534 million for the same quarter of the previous year)
- Diluted earnings per share: $0.26 (up from $0.16 for the same quarter of the previous year)
- Number of shares in issue: 29.161 million (up from 28.875 million for the same period of the previous year)
- Cash and cash equivalents: $13.219 million
- Cash and cash equivalents per share: $0.45
- Cash and cash equivalents makes up 1.21% of Boot Barn's market capital
- Cash and cash equivalents makes up 1.56% of Boot Barn's total assets
- Inventories: $301.737 million
- Inventories makes up 34.9% of Boot Barn's total assets
- Total stockholders equity in Boot Barn: $285.149 million
- Stockholders equity per share in Boot Barn: $9.77
- Boot Barn is trading at 3.82 times its stockholders equity per share which is within the expected range of between 2 and 4 times that most firms tend to trade at
Boot Barn (NYSE: BOOT) management commentary on 2nd quarter 2020 earnings and guidance
IRVINE, Calif.--(BUSINESS WIRE)-- Boot Barn Holdings, Inc. (NYSE: BOOT) today announced its nancial results for the second scal quarter ended September 28, 2019.
Jim Conroy, Chief Executive Officer, commented, “We sustained our strong momentum from early in the new scal year and delivered an outstanding second quarter. For the tenth consecutive quarter, our physical locations posted positive same store sales, which along with an acceleration in e-commerce growth, fueled a consolidated 7.8% comp gain. There were a number of highlights from our performance led by broad-based strength across virtually all categories and geographies, strong full-price selling, a sharp increase in exclusive brand penetration, and the addition of eight stores in the quarter. On top of robust top-line results, we also achieved a 170 basis point improvement in operating margin and earnings per share that were well ahead of expectations. Same store sales growth has accelerated to approximately 10% as we have moved into the third quarter and we believe that the strategies we have in place have us well positioned to capitalize on our opportunities during the upcoming holiday shopping season and over the long-term.”
Highlights for the quarter ended September 28, 2019, were as follows:
Fiscal Year 2020 Outlook
For the fiscal year ending March 28, 2020 the Company now expects:
For the fiscal third quarter ending December 28, 2019, the Company expects:
Jim Conroy, Chief Executive Officer, commented, “We sustained our strong momentum from early in the new scal year and delivered an outstanding second quarter. For the tenth consecutive quarter, our physical locations posted positive same store sales, which along with an acceleration in e-commerce growth, fueled a consolidated 7.8% comp gain. There were a number of highlights from our performance led by broad-based strength across virtually all categories and geographies, strong full-price selling, a sharp increase in exclusive brand penetration, and the addition of eight stores in the quarter. On top of robust top-line results, we also achieved a 170 basis point improvement in operating margin and earnings per share that were well ahead of expectations. Same store sales growth has accelerated to approximately 10% as we have moved into the third quarter and we believe that the strategies we have in place have us well positioned to capitalize on our opportunities during the upcoming holiday shopping season and over the long-term.”
Highlights for the quarter ended September 28, 2019, were as follows:
- Net sales increased 11.3% to $187.2 million.
- Same store sales increased 7.8%, including an increase in retail store same store sales of 8.0% and an increase in e-commerce sales of 7.0%.
- Net income was $7.7 million, or $0.26 per diluted share, compared to $4.5 million, or $0.16 per diluted share in the prior-year period. Net income per diluted share in the current-year period includes $0.02 per share of tax benet from the exercise of stock options compared to approximately $0.04 per share of tax benet from the exercise of stock options in the prior-year period. Excluding the tax benet in both years, net income per diluted share in the current-year period doubled to $0.24, compared to $0.12 in the prior-year period.
Fiscal Year 2020 Outlook
For the fiscal year ending March 28, 2020 the Company now expects:
- To open or acquire 25 stores, including stores opened scal year-to-date.
- Same store sales growth of approximately 6.5%, compared to the Company’s prior outlook of 6.0%.
- Income from operations of $78.0 million to $81.0 million, compared to the Company’s prior outlook of $75.4 million to $78.6 million.
- Interest expense of approximately $13.6 million, compared to the Company’s prior outlook of approximately $14.2 million.
- Net income of $49.0 million to $51.3 million, compared to the Company’s prior outlook of $46.2 million to $48.5 million.
- Net income per diluted share of $1.67 to $1.75 based on 29.3 million weighted average diluted shares outstanding, compared to the Company’s prior outlook of $1.57 to $1.65.
For the fiscal third quarter ending December 28, 2019, the Company expects:
- Same store sales growth of 5.0%.
- Total sales of $275.0 million to $280.0 million.
- Net income per diluted share of $0.73 to $0.77 based on 29.3 million weighted average diluted shares outstanding.
Boot Barn (NYSE:BOOT) stock price history
The image below obtained from Google, shows the stock price history of Boot Barn over the last 5 years. And its been a very good time for Boot Barn. 5 years ago the stock of Boot Barn was trading at around $17.80 a stock and its currently trading at $37.33 a stock. That's a strong return of 148.7% provided by Boot Barn stockholders over the last 5 years.
The stock of Boot Barn is trading at a lot closer to its 52 week high of $39.59 than it is to its 52 week low of $15.01 a stock, which to us is a clear indication that the short term sentiment and momentum of Boot Barn stock is very positive at this point in time,
The stock of Boot Barn is trading at a lot closer to its 52 week high of $39.59 than it is to its 52 week low of $15.01 a stock, which to us is a clear indication that the short term sentiment and momentum of Boot Barn stock is very positive at this point in time,
Recent coverage of Boot Barn
The extract below discusses the latest regarding Boot Barn as obtained from Zacks.com
Boot Barn (BOOT - Free Report) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this Western apparel and footwear retailer would post earnings of $0.21 per share when it actually produced earnings of $0.32, delivering a surprise of 52.38%. Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Boot Barn, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $187.18 million for the quarter ended September 2019, surpassing the Zacks Consensus Estimate by 1.75%. This compares to year-ago revenues of $168.11 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Boot Barn shares have added about 116.9% since the beginning of the year versus the S&P 500's gain of 21.1%
Read the full article here
Boot Barn (BOOT - Free Report) came out with quarterly earnings of $0.24 per share, beating the Zacks Consensus Estimate of $0.20 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this Western apparel and footwear retailer would post earnings of $0.21 per share when it actually produced earnings of $0.32, delivering a surprise of 52.38%. Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Boot Barn, which belongs to the Zacks Retail - Apparel and Shoes industry, posted revenues of $187.18 million for the quarter ended September 2019, surpassing the Zacks Consensus Estimate by 1.75%. This compares to year-ago revenues of $168.11 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Boot Barn shares have added about 116.9% since the beginning of the year versus the S&P 500's gain of 21.1%
Read the full article here
Boot Barn (NYSE: BOOT) stock valuation
So what do we value Boot Barn stock at after the release of their 2nd quarter 2020 earnings? . Based on this we have a target (full value) price for Boot Barn at $24.70 a stock. We therefore believe that the stock of Boot Barn is overvalued.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $24.70. Therefore we believe a good entry point into Boot Barn stock is at $22.20 or below. We expect the stock of Boot Barn to pull back from current levels to levels closer to our target price (full value price) in coming weeks and moths as we believe it is significantly overvalued at this point in time. We therefore rate Boot Barn as a sell
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $24.70. Therefore we believe a good entry point into Boot Barn stock is at $22.20 or below. We expect the stock of Boot Barn to pull back from current levels to levels closer to our target price (full value price) in coming weeks and moths as we believe it is significantly overvalued at this point in time. We therefore rate Boot Barn as a sell
Next earnings release of Boot Barn
It is expected that Boot Barn will publish their 3rd quarter of their fiscal 2019 earnings report in early February 2020