Boot Barn (BOOT) Q2 Earnings call transcript Oct 28, 2025

Boot Barn Holdings, Inc. recently reported strong second quarter earnings, highlighting a 14% increase in revenue and a 4.9% increase in same-store sales, both in-store and online. The company's robust performance was attributed to strategic initiatives aimed at expanding store bases, driving same-store sales growth, strengthening omnichannel leadership, and merchandise margin expansion.

Expanding Store Base and Market Share Gains

Boot Barn's strategic expansion plans have resulted in the opening of 15 new stores during the second quarter, bringing the total store count to 425 across 46 states. The company's new store engine has consistently met sales, earnings, and payback expectations, with a modeled new store performance of $3 million in revenue and a cash-on-cash return on capital of approximately 60% in the first year of operation. The company's healthy pipeline of 60 new units for this year is a testament to its successful expansion strategy, with plans to double its current store count in the US alone.

Strategic Initiatives for Long-Term Growth

Boot Barn's focus on driving same-store sales growth was evident in the second quarter, with a 4.9% increase in consolidated same-store sales. This growth was led by both brick-and-mortar and e-commerce channels, demonstrating the company's successful omnichannel strategy. The company's strategic initiatives, including expanding its store base and driving same-store sales growth, are expected to significantly outperform the industry, resulting in substantial market share gains.

Strengthening Omnichannel Leadership and Merchandise Margin Expansion

Boot Barn's investment in digital capabilities and customer experience has paid off, with e-commerce sales increasing by 10% in the second quarter. The company's innovative omnichannel strategies, such as the launch of the Boot Barn app and the testing of AI-driven solutions like Cassidy, are expected to further strengthen the company's digital presence and drive sales growth. The company's focus on merchandise margin expansion, achieved through supply chain efficiencies and exclusive brand penetration, is also noteworthy.

Executive Transition and Future Outlook

Boot Barn's strong second quarter performance was highlighted by the announcement of CEO Jim Conroy's departure to pursue an opportunity as CEO of Ross Stores. His successor, John Hazen, has been appointed as interim CEO, with Peter Keith transitioning into the role of Executive Chairman. The company's management team, including Jim Watkins, Laurie Grove, and Mike Love, is well-positioned to lead the company through its next phase of growth.

Boot Barn's outlook for the remainder of the fiscal year is positive, with expectations of 14% revenue growth and a 5% increase in same-store sales. The company's strategic initiatives and strong financial performance position it well for future growth, with plans to open 14 stores in the third quarter and 21 stores in the fourth quarter.

In conclusion, Boot Barn's second quarter earnings call highlighted the company's strong performance and strategic initiatives aimed at driving long-term growth. The company's focus on expanding its store base, driving same-store sales growth, and strengthening its omnichannel capabilities positions it well for continued success. With a well-positioned management team and a robust pipeline of new stores, Boot Barn is poised for a successful future.