IRVINE, Calif.--(BUSINESS WIRE)--
Boot Barn Holdings, Inc. (NYSE:BOOT) today announced preliminary results
for the third quarter of fiscal year 2018 ended December 30, 2017 in
advance of its participation in the ICR Conference on Monday, January 8,
2018.
Preliminary Results for the Third Quarter of Fiscal Year 2018
For the third quarter ended December 30, 2017, the Company expects to
report:
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Net sales increased 13% to approximately $225 million.
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Same store sales increased approximately 5.2%, with stores
outperforming e-commerce sales. This compares with third quarter
guidance of 2.0% to 4.0%.
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Net income per diluted share of $0.70 to $0.71 based on 27.6 million
weighted average diluted shares outstanding. Excluding the impact of
the change in federal tax law, preliminary net income per diluted
share is estimated to be $0.45 to $0.46 compared to guidance of $0.40
to $0.43, which was based on 27.2 million weighted average diluted
shares outstanding. Net income per diluted share includes
approximately $0.02 arising from a $1.0 million pre-tax net gain from
insurance and other settlements, primarily related to losses suffered
in the second quarter from Hurricane Harvey.
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The Company opened four new stores during the quarter.
Jim Conroy, Chief Executive Officer, commented, “I am very pleased with
our performance in the third quarter, in which we delivered strong same
store sales growth, solid merchandise margin performance, and earnings
that exceeded our guidance. Our same store sales was driven by growth in
all major product categories and strength in virtually every geography
across the country, with particularly solid performance in Texas. It was
further encouraging to see that the majority of our retail same store
sales growth was driven by an increase in transactions, indicating
strong customer traffic.”
The foregoing expected results are preliminary and remain subject to the
completion of normal quarter-end accounting procedures and closing
adjustments. The Company currently plans to report third quarter results
on January 31, 2018.
Fiscal Year 2018 Outlook
Given the strong sales performance, the Company has raised its outlook
for its fiscal year 2018, which ends March 31, 2018:
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Same store sales growth of 3.0% to 4.0%, compared to the Company’s
prior outlook of low single digit same store sales growth.
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Income from operations between $42.3 million and $43.8 million,
compared to the Company’s prior outlook of $40.0 million to $42.5
million.
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Net income between $23.3 million and $24.5 million. Excluding the
impact of the change in federal tax law, the Company expects net
income to be between $16.7 million and $17.6 million, compared to the
Company’s prior outlook of $15.4 million to $16.6 million.
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Net income per diluted share of $0.85 to $0.89 based on 27.6 million
weighted average diluted shares outstanding. Excluding the impact of
the change in federal tax law, the Company expects net income per
diluted share of $0.60 to $0.64 compared to the Company’s prior
outlook of $0.57 to $0.61, which was based on 27.2 million weighted
average diluted shares outstanding.
Mr. Conroy continued, “I am further encouraged that we continue to make
progress on each of our four strategic initiatives. Many of our efforts
to drive same store sales are building momentum, including both the
increased focus on our work business and the changes we have made with
our marketing. We have also transformed our e-commerce and omni channel
capabilities this year. While that created disruption to the business in
the Spring and resulted in some expense pressure during the holiday
period as we retrofitted our Wichita distribution center, we are well
positioned for additional growth going forward. Finally, we have
continued to invest in our design and development capability for
exclusive brands which we expect to drive merchandise margin expansion.
Tax Reform
Recent changes in tax law lowered the federal corporate tax rate from
35% to 21%, which the Company estimates will result in an effective tax
rate of 25% during the year ending March 30, 2019, the first full fiscal
year under the new law. During the quarter ended December 30, 2017, the
Company is required to re-measure deferred taxes under the new effective
tax rate of 25%. The Company estimates the deferred tax impact will
result in a non-cash tax benefit of $6.0 million, or approximately $0.22
per share, to its 3rd quarter earnings. Due to the timing of
the Company’s fiscal year, the fiscal year 2018 effective tax rate is
expected to be 35.5%, excluding the impact from the $6.0 million
re-measurement of deferred taxes. The 35.5% rate is calculated by
blending nine months at the Company’s historical rate of 39% and three
months at the Company’s new rate of 25% and applying the blended rate to
the entire fiscal year. The reduction in the Company’s full year
effective tax rate from 39.0%, assumed in its earlier guidance, to
35.5%, is expected to result in lower tax expense of $0.8 million, or
$0.03 cents per diluted share, during the quarter ended December 30,
2017.
ICR Conference 2018
The Company will be presenting at the ICR Conference 2018 held at the JW
Marriott Orlando Grande Lakes in Orlando, Florida, on Monday, January 8,
2018 at 1:30 pm Eastern Standard Time.
The audio portion of the presentation will be webcast live over the
internet and can be accessed under the Investor Relations section at www.investor.bootbarn.com.
An online archive will be available for a period of 90 days following
the presentation.
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 226 stores in 31
states, in addition to an e-commerce channel www.bootbarn.com.
The Company also operates www.sheplers.com,
the nation’s leading pure play online western and work retailer.
Sheplers has been part of the western, outdoor, and work lifestyle for
over 100 years. Beginning in February 2017, the Company has operated www.countryoutfitter.com,
an e-commerce site selling to customers who live a country lifestyle.
For more information, call 888-Boot-Barn or visit www.bootbarn.com.
Forward Looking Statements
This press release contains forward-looking statements that are subject
to risks and uncertainties. All statements other than statements of
historical fact included in this press release are forward-looking
statements. Forward-looking statements refer to our current expectations
and projections relating to, by way of example and without limitation,
our financial condition, liquidity, profitability, results of
operations, margins, plans, objectives, strategies, future performance,
business and industry. You can identify forward-looking statements by
the fact that they do not relate strictly to historical or current
facts. These statements may include words such as "anticipate",
"estimate", "expect", "project", "plan“, "intend", "believe", “may”,
“might”, “will”, “could”, “should”, “can have”, “likely”, “outlook” and
other words and terms of similar meaning in connection with any
discussion of the timing or nature of future operating or financial
performance or other events, but not all forward-looking statements
contain these identifying words. These forward-looking statements are
based on assumptions that the Company’s management has made in light of
their industry experience and on their perceptions of historical trends,
current conditions, expected future developments and other factors they
believe are appropriate under the circumstances. As you consider this
press release, you should understand that these statements are not
guarantees of performance or results. They involve risks, uncertainties
(some of which are beyond the Company’s control) and assumptions. These
risks, uncertainties and assumptions include, but are not limited to,
the following: decreases in consumer spending due to declines in
consumer confidence, local economic conditions or changes in consumer
preferences and the Company’s ability to effectively execute on its
growth strategy; the failure to realize the anticipated synergies from
the Sheplers acquisition and other risks of integration, to maintain and
enhance its strong brand image; to compete effectively; to maintain good
relationships with its key suppliers; and to improve and expand its
exclusive product offerings. The Company discusses the foregoing risks
and other risks in greater detail under the heading “Risk factors” in
the periodic reports filed by the Company with the Securities and
Exchange Commission. Although the Company believes that these
forward-looking statements are based on reasonable assumptions, you
should be aware that many factors could affect the Company’s actual
financial results and cause them to differ materially from those
anticipated in the forward-looking statements. Because of these factors,
the Company cautions that you should not place undue reliance on any of
these forward-looking statements. New risks and uncertainties arise from
time to time, and it is impossible for the Company to predict those
events or how they may affect the Company. Further, any forward-looking
statement speaks only as of the date on which it is made. Except as
required by law, the Company does not intend to update or revise the
forward-looking statements in this press release after the date of this
press release.
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Source: Boot Barn Holdings, Inc.