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    BOOT
    Earnings call· Jun 2026(Q1 FY27)

    Boot Barn Holdings Q1 FY27 earnings call BOOT

    Jul 29, 2026 Source

    Executive summary

    Boot Barn Q1 FY27 — Strong Start Exceeds Expectations, Raises Full-Year Outlook

    Boot Barn delivered a strong first quarter, surpassing expectations with robust revenue and EPS growth, supported by new store expansion and healthy same-store sales. While July saw a temporary moderation in traffic due to external events, management remains confident in its raised full-year outlook, driven by continued strategic execution and merchandise margin expansion.

    Highlights

    5

    • Q1 revenue increased 18% to $594 million, driven by new store openings and consolidated same-store sales growth of 4.7%.

    • Q1 diluted EPS increased 32% to $2.29, including a $0.38 benefit from tariff refunds.

    • Merchandise margin exceeded guidance, driven by 60 basis points of product margin expansion and $14.7 million in tariff refunds.

    • Work boots business delivered high single-digit comp growth for the fifth consecutive quarter, reflecting successful reinvigoration efforts.

    • E-commerce comp sales increased 13.4%, with strong adoption of omnichannel capabilities like buy online, pick up in store.

    Concerns

    2

    • July consolidated same-store sales were approximately flat, below expectations due to fewer Western lifestyle stadium events and World Cup matches.

    • Full-year exclusive brand penetration is now expected to be approximately flat to slightly down compared to the prior year, due to strong third-party work boots sales.

    Guidance & targets

    25
    CategoryTargetConfidence
    Q2 FY27 Total Sales
    $582 million
    medium materiality
    High
    Q2 FY27 Consolidated Same-Store Sales
    +2%
    medium materiality
    High
    Q2 FY27 Merchandise Margin Rate
    approximately 51.8% of sales
    medium materiality
    High
    Q2 FY27 Gross Profit Rate
    approximately 36.6% of sales
    medium materiality
    High
    Q2 FY27 SG&A Expense Rate
    approximately 25.1% of sales
    medium materiality
    High
    Q2 FY27 Income from Operations
    $67 million or 11.5% of sales
    medium materiality
    High
    Q2 FY27 Earnings Per Diluted Share
    $1.65
    high materiality
    High
    FY27 Total Sales
    $2.6 billion
    high materiality
    High
    FY27 Consolidated Same-Store Sales
    +4%
    high materiality
    High
    FY27 Retail Store Comps
    +3%
    medium materiality
    High
    FY27 E-commerce Comps
    +13%
    medium materiality
    High
    FY27 Merchandise Margin Rate
    approximately 52.2% of sales
    high materiality
    High
    FY27 Gross Profit Rate
    approximately 38.7% of sales
    medium materiality
    High
    FY27 SG&A Leverage
    40 basis points
    medium materiality
    High
    FY27 Income from Operations
    $374 million or 14.3% of sales
    high materiality
    High
    FY27 Net Income
    $281 million
    high materiality
    High
    FY27 Earnings Per Diluted Share
    $9.23
    high materiality
    High
    FY27 Net Capital Expenditures
    $130 million
    medium materiality
    High
    FY27 Effective Tax Rate
    25.7%
    low materiality
    High
    FY27 New Store Openings
    70 stores
    high materiality
    High
    FY27 Exclusive Brand Penetration
    approximately flat to slightly down
    medium materiality
    Medium
    FY27 Merchandise Margin Expansion (ex-tariff)
    approximately 60 basis points
    high materiality
    High
    FY27 AUR Growth
    up 2% to 3%
    medium materiality
    High
    FY27 Transactions Growth
    flat to up 1%
    medium materiality
    High
    Long-term Store Opportunity
    1,200 stores
    high materiality
    High

    Segment performance

    7
    SegmentRevenueYoYQoQMargin
    Consolidated
    First quarter results exceeded our expectations and reflected broad-based strength across the business.
    		$594 million18%——
    Retail Store
    Store comp growth was driven by a 3% increase in average unit retail and approximately flat transactions.
    Average Unit Retail growth: 3%Transactions: approximately flat
    		—3.8%——
    E-commerce
    In the first quarter, e-commerce comp sales increased 13.4%, driven by double-digit growth on bootbarn.com.
    		—13.4%——
    Men's Western Boots
    Men's Western boots increased mid-single digits.
    		—mid-single digits——
    Ladies Western Boots
    Ladies Western boots decreased mid-single digits as they cycled mid-teen comps in the prior year.
    		—mid-single digits——
    Men's and Ladies Apparel
    Men's and ladies apparel increased high single digits, led by double-digit growth in denim, which also cycled exceptional growth last year.
    Denim growth: double-digit
    		—high single digits——
    Work Boots Business
    Our work boots business delivered high single-digit comp growth during the quarter, which marks the fifth consecutive quarter of growth in this category and the strongest growth over the past few years.
    		—high single-digit——

    Operational metrics

    32
    Tariff Refunds
    $14.7 million
    Q1 FY27

    Comprised of a $14.7 million benefit to merchandise margin worth 250 basis points.

    Tariff-Related Interest Income
    $0.5 million
    Q1 FY27

    Received $0.5 million of tariff-related interest income.

    EPS Benefit from Tariff Refunds
    $0.38
    Q1 FY27

    Including a $0.38 benefit from tariff refunds.

    Product Margin Expansion
    60 basis points
    Q1 FY27

    Driven by 250 basis points of tariff refunds and 60 basis points of product margin expansion.

    Freight Expense Headwind
    90 basis pointsYoY
    Q1 FY27

    Partially offset by a 90 basis point headwind from lapping low freight expense in the prior year period.

    Buying, Occupancy and Distribution Center Costs Deleverage
    90 basis points
    Q1 FY27

    Primarily due to occupancy costs associated with new store growth.

    SG&A Expense vs. Guidance
    30 basis points bettervs guidance
    Q1 FY27

    SG&A expense was $149 million or 25.2% of sales, an increase of 10 basis points from the prior year period and 30 basis points better than our guidance.

    Income from Operations Margin
    15.3%
    Q1 FY27

    Income from operations was $91 million or 15.3% of sales.

    Inventory
    $900 million16% year-over-year
    Q1 FY27

    On a consolidated basis, inventory increased 16% year-over-year to $900 million.

    Inventory
    1%on a same-store basis
    Q1 FY27

    Increased 1% on a same-store basis.

    Share Repurchase
    $25 million
    Q1 FY27

    Repurchased more than 158,000 shares of common stock for an aggregate cost of $25 million under our $200 million share repurchase authorization.

    Cumulative Share Repurchase
    $75 million
    since FY26

    Cumulative repurchases, which began in fiscal '26, total $75 million for approximately 445,000 shares.

    Cash Balance
    $139 million
    Q1 FY27 end

    Ended the quarter with $139 million in cash.

    Revolving Credit Facility Drawn
    $0
    Q1 FY27 end

    Ended the quarter with $0 drawn on our line of credit.

    New Store Average Annual Revenue
    $3.2 million
    annual

    New store openings are projected to generate $3.2 million in average annual revenue with an investment payback of less than 2 years.

    Exclusive Brand Penetration
    lower than anticipatedvs anticipated
    Q1 FY27

    Exceptional performance of work boots business, driven by strong demand for third-party brands, resulted in lower exclusive brand penetration during the first quarter than anticipated.

    Tariff Refunds
    $2.4 million
    Q2 FY27

    Expected to benefit second quarter merchandise margin by $2.4 million or 40 basis points.

    EPS Benefit from Tariff Refunds
    $0.06
    Q2 FY27

    Estimated $0.06 benefit to earnings per diluted share from tariff refunds.

    Tariff Refunds
    $0.7 million
    Q3 FY27

    Expected to benefit third quarter merchandise margin by $0.7 million or 10 basis points.

    EPS Benefit from Tariff Refunds
    $0.02
    Q3 FY27

    Estimated $0.02 benefit to earnings per diluted share from tariff refunds.

    Tariff Refunds
    $17.8 million
    FY27

    Expected to benefit full year merchandise margin by $17.8 million or 70 basis points.

    Tariff-Related Interest Income
    $0.5 million
    FY27

    Expected $0.5 million benefit to interest income for the full year.

    EPS Benefit from Tariff Refunds
    $0.46
    FY27

    Estimated $0.46 benefit to earnings per diluted share from tariff refunds for the full year.

    Freight Improvement
    10 basis points
    FY27

    Full year merchandise margin guidance includes 10 basis points of freight improvement.

    Product Margin Expansion
    50 basis points
    FY27

    Full year merchandise margin guidance includes 50 basis points of product margin expansion.

    EBIT Rate Expansion
    170 basis points
    3-year period

    EBIT rate expansion of 170 basis points over a 3-year period, excluding tariffs.

    Store Count Increase
    93 stores20% increase
    last 12 months

    Opened 93 stores over the last 12 months, a 20% increase in store count.

    Marketing Spend
    3%
    FY

    Target a 3% marketing spend for the full year.

    Average Unit Retail Growth
    2% to 3%
    FY27

    Expecting AUR to be up 2% to 3% on the year.

    Transactions Growth
    flat to up 1%
    FY27

    Expecting transactions to be flat to up 1% on the year.

    Exclusive Brand Penetration
    50%
    long-term

    Long-term target for exclusive brand penetration.

    New vs. Returning Customers
    roughly half and half
    current

    Mix of new and returning customers has been roughly half and half.

    Industry KPIs

    8
    MetricValueDetails
    Sg a OPEX ratio25.2%% of sales
    Comparable sales4.7%%
    Store count growth566locations
    Gross margin drivers130 basis pointsbps
    Share buyback capital return$25 millionUSD
    Inventory position markdown risk$900 millionUSD
    Same sku like for like inflationmore muted
    Distribution supply chain cost economics90 basis pointsbps

    Deals & partnerships

    1
    LendersAmendment to revolving credit facility, doubling capacity and extending maturity.$500 millionto 2031

    Completed an amendment to the revolving credit facility, doubling its capacity to $500 million and extending the maturity date to 2031.

    Risks & headwinds

    3
    July Sales Decelerationfirst 4 weeks of the fiscal second quarter

    Consolidated same-store sales approximately flat in first 4 weeks of Q2, below expectations.

    Mitigation: Management believes it's a temporary impact from fewer Western lifestyle stadium events/concerts and World Cup matches; confident in balance of year outlook.

    Exclusive Brand Penetrationfull year

    Full-year exclusive brand penetration expected to be approximately flat to slightly down.

    Mitigation: Viewed as a positive outcome due to continued strength in third-party work boots, driving incremental sales and attracting new customers.

    Potential Future Freight Cost Increasesnext year

    Rising oil prices and fuel surcharges could impact freight costs.

    Mitigation: Management will monitor market conditions and adjust pricing accordingly; current year freight improvement is modeled and locked in.

    What to watch in Q2 FY27

    5

    Consolidated same-store sales trend

    Q2 FY27
    Currentapproximately flat
    TargetRecovery to Q2 guidance of +2%

    Why it matters

    To confirm July's slowdown was temporary and not indicative of a broader demand issue, impacting full-year guidance.

    Through the first 4 weeks of the fiscal second quarter, consolidated same-store sales are approximately flat. While this represents a moderation from our first quarter performance, it was largely anticipated as we lap the strongest sales month of the second quarter from last year. July sales did, however, come in below our expectations due to a couple of factors that were not contemplated in our original outlook.

    Q&A highlights

    6

    Could you help bridge the delta between June and July comps, specifically the impact of transitory events on traffic and the underlying trend in July?

    John Hazen explained that the deceleration in July was broad-based across Western categories and geographies, primarily a traffic issue due to fewer stadium country music tours and World Cup distraction. AUR remained healthy, and the work business was strong (high single-digits). Jim Watkins added that July last year was a tough +11% comp, and the Q2 guide adds 1 point of comp to July's trend to account for artificially low sales.

    “What's important to note, it was across all geographies, again, so there wasn't something specific around weather in a particular geo or something else going on, oil, et cetera. And the work business was incredibly healthy.”

    asked by Matthew Boss · answered by John Hazen

    2 min read6 chapters

    Detailed Narrative

    01

    Q1 Performance Highlights

    Boot Barn delivered a strong first quarter, exceeding expectations with 18% revenue growth to $594 million and consolidated same-store sales growth of 4.7%. This performance was driven by the opening of 27 new stores and effective expense management. Diluted EPS increased 32% to $2.29, significantly boosted by a $0.38 benefit from tariff refunds and stronger-than-expected product margins.

    02

    July Sales Moderation and Outlook Confidence

    The first four weeks of Q2 saw consolidated same-store sales approximately flat, a moderation from Q1 performance and below expectations. This was attributed to fewer Western lifestyle stadium events and the temporary impact of World Cup matches on customer traffic. Despite these factors, management remains confident in its raised full-year outlook, citing easier comparisons later in the quarter and the short-term nature of the July headwinds.

    03

    Strategic Initiative: New Store Growth

    Boot Barn opened 27 new stores in Q1, bringing its total to 566 locations across 49 states. The company remains on track to open 70 stores this fiscal year, with new stores consistently exceeding expectations. These new locations are projected to generate $3.2 million in average annual revenue with an investment payback of less than two years, supporting the long-term goal of 1,200 stores across the U.S.

    04

    Strategic Initiative: Same-Store Sales & Merchandising

    Q1 consolidated same-store sales grew 4.7%, with brick-and-mortar sales increasing 3.8%, driven by a 3% increase in average unit retail and approximately flat transactions. The work boots business was a standout, delivering high single-digit comp growth for the fifth consecutive quarter, a result of successful remerchandising efforts, increased marketing focus, and strategic investments in key third-party brands.

    05

    Strategic Initiative: Omnichannel & Exclusive Brands

    E-commerce comp sales increased 13.4%, with strong adoption of omnichannel capabilities like buy online, pick up in store and ship-to-store, which enhance customer engagement and reduce fulfillment costs. While exclusive brand penetration was lower than anticipated in Q1 due to the exceptional performance of third-party work boots, the company still expects full-year merchandise margin (excluding tariff refunds) to expand by 60 basis points, driven by buying economies of scale and improved full-price selling.

    06

    Tariff Refund Impact and Financial Flexibility

    Q1 results included a significant $0.38 EPS benefit from tariff refunds, comprising a $14.7 million merchandise margin benefit and $0.5 million in interest income. Further tariff benefits are anticipated in Q2 ($0.06 EPS) and Q3 ($0.02 EPS), contributing to an estimated $0.46 EPS benefit for the full year. The company also enhanced its financial flexibility by doubling its revolving credit facility capacity to $500 million and extending its maturity to 2031.

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