Boot Barn's Q4 2025: Unraveling Contradictions in Inventory, E-Commerce, and Sales Growth

Inventory position and fashion risk, e-commerce growth and volatility, merchandise margin drivers, pricing strategy and consumer behavior, same-store sales growth expectations are the key contradictions discussed in Boot Barn Holdings' latest 2025Q4 earnings call.



Revenue and Store Expansion:
- Boot Barn Holdings reported total revenue of $454 million for Q4, marking a 17% increase, with 21 new stores opened during the quarter.
- The increase is attributed to the opening of new stores and strong consolidated same-store sales growth.

Same-Store Sales and Margin Expansion:
- Consolidated same-store sales increased 6% in Q4, with same-store sales in both retail stores and e-commerce channels growing positively.
- Merchandise margin expanded 210 basis points, driven by supply chain efficiencies, lower shrink expenses, and increased exclusive brand penetration.

Impact of Tariffs and Pricing Strategy:
- Boot Barn anticipates approximately $8 million in additional costs due to tariffs, impacting the second half of fiscal '26.
- The company plans to mitigate costs by reducing costs, resourcing production to lower-tariff countries, and balancing pricing strategies.

Digital Growth and Omnichannel Strategy:
- Online sales increased 9.8% in Q4, with the digital flagship bootbarn.com accounting for 75% of online sales.
- Growth in e-commerce is attributed to increased brand awareness and online demand corresponding with new store openings.