Boot Barn Reports Q4 in Line with Expectations; Stock Declines

Boot Barn (NYSE: BOOT), a western-inspired apparel and footwear retailer, met analysts' revenue expectations in Q4 CY2024. Sales increased by 16.9% year over year to $608.2 million, matching the estimated figure.

Financial Highlights

* Revenue: $608.2 million (in line with estimates)
* GAAP EPS: $2.43 (0.8% above consensus)
* Revenue guidance for Q1 CY2025: $455.5 million (close to analyst estimates)
* Operating margin: 16.4% (up from 14.4% in Q4 CY2023)
* Free cash flow margin: 18.8% (up from 13.1% in Q4 CY2023)
* Same-store sales: 8.6% year-over-year growth

Key Metrics

* Number of locations: 438 (up from 382 in Q4 CY2023)
* Annualized revenue growth over the last five years: 16.8%

Analyst Outlook

Sell-side analysts project 15% revenue growth over the next 12 months, indicating market optimism for the company's products.

Same-Store Sales Concern

While same-store sales improved in Q4 CY2024, the overall trend remains concerning with an average annual decline of 1.7% over the last two years. This suggests that Boot Barn may be relying heavily on new store openings to boost revenue.

Stock Performance

Following the Q4 results, BOOT stock dropped by 6.2% to $163.80, reflecting investor concerns about the company's long-term growth prospects.

Recommendation

Based on the mixed Q4 performance and same-store sales weakness, we recommend investors carefully consider their investment decision in BOOT.