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    BOOT
    Earnings call· Mar 2026(Q4 FY26)

    Boot Barn Holdings Q4 FY26 earnings call BOOT

    May 14, 2026 Source

    Executive summary

    Boot Barn Q4 FY26 — Strong Sales and EPS Growth Driven by New Store Expansion and Strategic Initiatives

    Boot Barn delivered strong Q4 and full-year FY26 results, driven by robust new store expansion and effective execution of strategic initiatives, including exclusive brand growth and work boots reinvigoration. The company's Q1 FY27 start shows continued broad-based strength, with management confident in its ability to navigate near-term cost pressures through merchandise margin expansion and SG&A leverage, while progressing towards its long-term store count target.

    Highlights

    5

    • Full-year revenue increased 18% to $2.25 billion, driven by 80 new store openings and 7.2% same-store sales growth.

    • Full-year earnings per diluted share grew 25% to $7.35, an increase of $1.47 compared to the prior year.

    • Exclusive brand penetration increased 220 basis points for the full year to 40.8%, significantly outperforming expectations.

    • Q1 FY27 quarter-to-date same-store sales are up 5%, cycling high single-digit growth in the prior year period.

    • Merchandise margin expanded by 80 basis points for the full year, contributing to a 660 basis point expansion over the past 6 years.

    Concerns

    4

    • Q4 merchandise margin decreased 30 basis points, driven by a 70 basis point headwind from cycling low shrink and low freight expense in the prior year.

    • Buying, occupancy, and distribution center costs deleveraged by 50 basis points in Q4, primarily due to new store occupancy costs.

    • Q1 FY27 merchandise margin is expected to decline 60 basis points year-over-year, primarily due to a 70 basis point increase in freight expense.

    • Q1 FY27 SG&A is expected to deleverage 40 basis points year-over-year, largely due to timing of marketing expenses and incremental store growth expenses.

    Guidance & targets

    19
    CategoryTargetConfidence
    Total sales
    $2.6 billion
    high materiality
    High
    Consolidated same-store sales growth
    4%
    high materiality
    High
    Merchandise margin rate
    51.4% of sales
    medium materiality
    High
    Gross profit rate
    37.9% of sales
    medium materiality
    High
    SG&A leverage
    40 basis points
    medium materiality
    High
    Income from operations
    $353 million
    high materiality
    High
    Net income
    $265 million
    high materiality
    High
    Earnings per diluted share
    $8.64
    high materiality
    High
    Capital expenditures
    $130 million
    medium materiality
    High
    Effective tax rate
    25.7%
    low materiality
    High
    New store openings
    70 stores
    high materiality
    High
    Income from operations leverage point
    3% consolidated same-store sales growth
    medium materiality
    High
    Total sales
    $584 million
    high materiality
    High
    Consolidated same-store sales increase
    4%
    high materiality
    High
    Merchandise margin
    51.5% of sales
    medium materiality
    High
    Gross profit
    37.3% of sales
    medium materiality
    High
    SG&A
    25.5% of sales
    medium materiality
    High
    Income from operations
    $69 million
    high materiality
    High
    Earnings per diluted share
    $1.71
    high materiality
    High

    Segment performance

    2
    SegmentRevenueYoYQoQMargin
    Retail Stores
    Store comp growth was driven by a low single-digit increase in transaction count and to a lesser extent, growth in average unit retail.
    Q1 FY27 YTD Comp Sales: 1%
    		—5.2%——
    E-commerce
    e-commerce comp sales increased 14.1%, driven by double-digit growth on bootbarn.com.
    Q1 FY27 YTD Comp Sales: 5%
    		—14.1%——

    Operational metrics

    42
    Earnings per diluted share (YoY increase)
    $1.4725% growth YoY
    FY26

    Earnings per diluted share grew 25% to $7.35, an increase of $1.47 compared to the prior year.

    Earnings per diluted share
    $1.4519% increase YoY
    Q4 FY26

    Earnings per diluted share in the fourth quarter increased 19% compared to the prior year period to $1.45.

    SG&A expenses
    $139 million50 basis point improvement YoY
    Q4 FY26

    SG&A expenses for the quarter were $139 million or 25.7% of sales, which was a 50 basis point improvement over last year, but slightly higher than expectations.

    Exclusive brand penetration
    40.8%220 basis points increase YoY
    FY26

    Exclusive brand penetration increased 220 basis points for the full year to 40.8%.

    Exclusive brand penetration
    90 basis pointsincrease YoY
    Q4 FY26

    fourth quarter penetration up 90 basis points.

    Customer loyalty database growth
    12.5%YoY
    FY26

    For fiscal '26, our customer loyalty database grew 12.5% year-over-year, reaching 10.8 million total active customers.

    Work boots comp sales growth
    mid-single-digit
    Q4 FY26

    Our work boots business delivered mid-single-digit comp growth during the quarter, which, as I mentioned earlier, marks the fourth consecutive quarter of growth in this category.

    Work boots comp sales growth
    high single digits
    Q1 FY27 YTD (first 6 weeks)

    notably work boots are trending up in the high single digits.

    Men's Western boots comp sales growth
    mid-single digits
    Q4 FY26

    Men's Western boots increased mid-single digits

    Ladies Western boots comp sales growth
    low single digits
    Q4 FY26

    ladies Western boots increased low single digits.

    Men's and Ladies apparel comp sales growth
    double digits
    Q4 FY26

    men's and ladies apparel increased double digits, led by low-teens growth in denim.

    Denim comp sales growth
    low-teens
    Q4 FY26

    led by low-teens growth in denim.

    New store contribution to consolidated same-store sales
    150 basis points
    FY26

    Stores opened within the past 5 years, which as a reminder, have not yet reached sales maturity, added approximately 150 basis points to consolidated same-store sales in fiscal '26.

    Merchandise margin expansion
    80 basis pointsYoY
    FY26

    Merchandise margin expanded by 80 basis points, contributing to a remarkable 660 basis point expansion over the past 6 years.

    Merchandise margin decline
    30 basis pointsYoY
    Q4 FY26

    Fourth quarter merchandise margin decreased 30 basis points, which outperformed our guidance.

    Gross profit decline
    80 basis pointsYoY
    Q4 FY26

    resulting in a gross profit decline during the quarter of 80 basis points.

    Income from operations
    $57 million
    Q4 FY26

    Income from operations was $57 million or 10.6% of sales

    Cash balance
    $141 million
    Q4 FY26 end

    We ended the quarter with $141 million in cash and 0 drawn on our $250 million revolving line of credit.

    Revolving line of credit
    $250 million
    Q4 FY26

    0 drawn on our $250 million revolving line of credit.

    IEEPA tariff refund (potential recovery)
    $18 million
    FY27

    our outlook excludes the potential recovery of approximately $18 million in IEEPA tariff refund that we are actively pursuing.

    SG&A leverage point
    2%
    FY27

    We expect to leverage selling, general and administrative expenses at 2% same-store sales growth.

    Buying, occupancy, and distribution center costs leverage point
    10%
    FY27

    we anticipate a higher hurdle rate this year on buying, occupancy and distribution center costs with expected leverage at 10% same-store sales growth.

    Merchandise margin (Q1 FY27 product margin growth)
    10 basis pointsYoY
    Q1 FY27

    This guidance reflects 10 basis points of product margin growth as we lap 100 basis points of product margin expansion in the prior year period

    Freight expense (Q1 FY27 increase)
    70 basis pointsYoY increase
    Q1 FY27

    offset by a 70 basis point increase in freight expense as we cycle low freight costs last year.

    Freight expense (FY27 decrease)
    10 basis pointdecrease YoY
    FY27

    We expect the year-over-year freight pressure to moderate as the year progresses and anticipate a 10 basis point decrease in freight expense for the full year.

    Buying, occupancy, and distribution center costs deleverage
    120 basis pointsdeleverage
    Q1 FY27

    including 120 basis points of deleverage in buying, occupancy and distribution center costs for the first quarter.

    SG&A deleverage
    40 basis pointsdeleverage YoY
    Q1 FY27

    SG&A for the first quarter is expected to be approximately 25.5% of sales, representing 40 basis points of deleverage year-over-year.

    Marketing spend as % of sales
    3%in line with historical level
    FY27

    For the full year, marketing spend is expected to remain in line with our historical level of approximately 3% of sales.

    New store openings
    2510 stores accelerated from early FY27
    Q4 FY26

    total revenue increased 19%, driven by the opening of 25 new stores during the period

    New store openings
    25vs 14 in prior year
    Q1 FY27

    we now expect to open approximately 25 stores in the first quarter of fiscal '27

    New store openings (remaining FY27)
    45
    FY27

    with the remaining 45 stores anticipated to open relatively evenly throughout the balance of the year.

    New store growth rate
    17%
    FY26

    Store growth in fiscal '26 actualized at 17%

    New store growth rate
    13%
    FY27

    and we anticipate 13% growth in fiscal '27, resulting in a 2-year average growth rate of 15%.

    New store average annual sales (first full year)
    $3.2 million
    First full year of operations

    these stores on average are on track to generate approximately $3.2 million in annual sales in their first full year of operations

    New store payback period
    less than 2 years
    null

    and to pay back their initial investment in less than 2 years.

    Q1 FY27 YTD Average Unit Retail (AUR)
    3%up
    Q1 FY27 YTD (first 6 weeks)

    We're up roughly 3% in AUR for the first 6 weeks.

    Q1 FY27 YTD Transactions
    1%up
    Q1 FY27 YTD (first 6 weeks)

    transactions rather, excuse me, were up roughly 1%.

    New customer acquisition (exclusive brand sites)
    70%
    null

    Roughly 70% of them are customers who have never shopped with us in-store, on bootbarn.com or any of our other channels.

    April retail comps
    3.8%up
    April

    in April, retail comps were up 3.8%.

    April e-commerce comps
    18.3%up
    April

    E-commerce was up 18.3%.

    Most recent 2-week period retail comps
    5%up
    Most recent 2 weeks (Q1 FY27)

    And in the most recent 2-week period, they're both up about 5%.

    Most recent 2-week period e-commerce comps
    5%up
    Most recent 2 weeks (Q1 FY27)

    And in the most recent 2-week period, they're both up about 5%.

    Industry KPIs

    9
    MetricValueDetails
    Sg a OPEX ratio25.7%% of sales
    Comparable sales6.1%%
    Store count growth539locations
    Gross margin drivers80 basis pointsbps
    Net debt to adjusted EBITDA—
    Share buyback capital return$12.5 millionUSD
    Inventory position markdown risk$845 millionUSD
    Same sku like for like inflation—
    Distribution supply chain cost economics50 basis pointsbps

    Product announcements

    1
    ProductTypeDetails
    Cody James, Hawx, Cheyenne, CLEO & WOLF websiteslaunch

    Deals & partnerships

    1
    Stagecoach (country music festival)Official boot retailer for Stagecoach, hosted events, sponsored music stage.

    Boot Barn served as the official boot retailer for Stagecoach, hosting events at local stores and onsite, and sponsoring the Mustang music stage. The event was streamed by Amazon, providing national/global amplification.

    Risks & headwinds

    5
    Freight cost increasesQ1 FY27, FY27

    Q1 FY27 freight expense expected to increase 70 bps YoY; FY27 freight expense expected to decrease 10 bps YoY (assuming current rates).

    Mitigation: Negotiations with logistics partners for better discounts/rebates, supply chain efficiencies, and logistics pricing improvements.

    Occupancy costs pressure from new store growthQ4 FY26, Q1 FY27, FY27, ongoing

    Buying, occupancy, and distribution center costs deleveraged 50 bps in Q4 FY26; Q1 FY27 deleverage of 120 bps; FY27 leverage point at 10% same-store sales growth.

    Mitigation: Expect to offset pressure through merchandise margin expansion and SG&A leverage; continued maturation of newer cohorts to support same-store sales growth and margin performance over time.

    Higher preopening costs for high-traffic storesFY27 (one store not opening until later in the fiscal year)

    Several additional months of occupancy expense at elevated costs for 2 high-traffic, high-visibility stores.

    Mitigation: These stores are expected to generate outsized sales volumes relative to typical new store model.

    Difficult prior-year comparison for Q1 FY27 earningsQ1 FY27

    Q1 FY27 EPS expected to be $1.71 vs $1.74 last year.

    Mitigation: Q2 FY27 earnings expected to be in line with Q1 FY27, resulting in strong YoY growth given last year's comparatively smaller Q2.

    Potential impacts from changes in the macroeconomic environmentFY27

    Not quantified.

    Mitigation: Guidance reflects observed trends and does not consider potential impacts from macro changes.

    What to watch in Q1 FY27

    5

    Merchandise margin rate

    Q2 FY27
    CurrentQ1 FY27 expected 51.5% (60 bps decline YoY)
    TargetImprovement in YoY comparison as freight pressure moderates.

    Why it matters

    Merchandise margin is a key driver of profitability, and the moderation of freight headwinds is crucial for its recovery.

    We expect the year-over-year freight pressure to moderate as the year progresses and anticipate a 10 basis point decrease in freight expense for the full year.

    Q&A highlights

    6

    Elaborate on consistency of demand across categories/regions given Q1's tough compare.

    Demand is broad-based across most major merchandise categories, with work boots up high single digits, denim, men's Western boots, and women's apparel performing well. Women's boots are softer due to strong prior-year comps.

    “Looking at the first 6 weeks of Q1, we're very happy with how broad-based the comps and the growth has been. We're seeing across most major merchandise categories, notably work boots are trending up in the high single digits.”

    asked by Matthew Boss · answered by John Hazen

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Initiatives Progress

    CEO John Hazen highlighted the successful execution of four strategic initiatives, including new store growth, same-store sales, omnichannel development, and merchandise margin expansion. He also noted exceeding expectations on three additional priorities: building a sourcing organization, marketing exclusive brands, and reinvigorating the work boots business, demonstrating a strong operational focus.

    02

    New Store Expansion

    Boot Barn opened a record 80 new stores in FY26, doubling its store count to 539 locations. These new stores contributed over $750 million in incremental revenue, generated approximately $3.2 million in annual sales in their first full year, and paid back initial investment in less than two years. The company maintains a long-term target of 1,200 stores, with 70 planned for FY27.

    03

    Exclusive Brands and Sourcing

    Exclusive brand penetration reached 40.8% for FY26, up 220 basis points, with a long-term target of 50%. The newly built sourcing organization contributed to margin expansion through tariff mitigation and factory negotiations, with run-rate benefits expected in late FY27 and FY28. Four dedicated brand websites were launched for Cody James, Hawx, Cheyenne, and CLEO & WOLF, driving new customer acquisition.

    04

    Work Boots Business Reinvigoration

    The work boots business achieved four consecutive quarters of accelerating comp sales growth in FY26, maintaining momentum into FY27 with high single-digit growth in the first six weeks. This was driven by enhanced in-store merchandising, increased marketing focus, and targeted investments in key third-party brands to optimize assortment, despite some rebalancing impacting exclusive brand penetration in this category.

    05

    Customer Engagement and AI

    The customer loyalty database grew 12.5% year-over-year to 10.8 million active customers, indicating strong brand affinity. AI is being leveraged to enhance the customer experience, drive incremental traffic across online and in-store channels, and improve efficiency in digital operations, particularly through social media platforms like Meta and TikTok for exclusive brand marketing.

    06

    Freight and Occupancy Cost Dynamics

    The company is experiencing near-term pressure📎 on buying, occupancy, and distribution center costs due to accelerated store growth and investments in distribution centers. Management expects to offset this through merchandise margin expansion and SG&A leverage, with freight costs expected to moderate📎 as the year progresses due to logistics negotiations, aiming for a 10 basis point decrease in freight expense for FY27.

    AI-generated summary of the company’s earnings call. Not investment advice.