Boot Barn Holdings (BOOT) Trims Q3 Expectations

Boot Barn Holdings, Inc. (NYSE: BOOT) announced preliminary results for the third quarter of fiscal year 2016 ended December 26, 2015 in preparation for participation in the ICR Conference on Tuesday, January 12, 2016.

Preliminary Results for the Third Quarter of Fiscal Year 2016

Estimated results for the third quarter ended December 26, 2015 were as follows:

• Preliminary net sales increased 49% to approximately $194 million;
• Opened 5 new stores and completed the rebranding of 19 Sheplers stores;
• Preliminary consolidated same store sales (which include e-commerce and Sheplers sales) declined approximately 2.0%, with Boot Barn and Sheplers performing similarly. This compares with previous third quarter guidance of positive low single digits;
• Preliminary adjusted net income per diluted share between $0.43 to $0.44, compared to previous guidance of $0.47 to $0.49.

*** The Street was looking for Q3 revenue of $192 million and EPS of $0.47.

1) Adjusted net income is a non-GAAP measure. An explanation of the computation of this measure and a reconciliation to GAAP net income is included below. See also "Non-GAAP Financial Measures."

Jim Conroy, Chief Executive Officer, commented, “During the third quarter we faced increasing headwinds due to the softening of local economies dependent on oil and other commodities, and a challenging retail environment due to unseasonably warm weather in many of our markets. We also continued to integrate the newly acquired Sheplers business, which is now largely complete, and we feel very good about the acquisition. The Sheplers e-commerce business achieved solid growth for the quarter. The nineteen rebranded stores were negative for the quarter as a result of disruption from remodeling construction, and cycling outsized promotional activity in the prior year period. These stores have turned positive post-Christmas, albeit later than we had anticipated. On a consolidated basis, our same store sales declined in October and November before improving to nearly flat in December. Fortunately, we managed our merchandise levels prudently, resulting in a healthy and clean inventory position as we entered the fourth quarter, which is off to a strong start in the first two weeks.”

Mr. Conroy continued, “We are pleased with the double digit growth we were able to achieve in our combined e-commerce channel. We also feel good about the overall Boot Barn concept as we have continued to experience strong same store sales growth in many of our core markets without significant exposure to commodity prices, including California, Arizona and Nevada. Finally, we have continued to execute on our growth strategies, further expanding our store footprint, improving the merchandise margin at both Boot Barn and Sheplers stores and increasing our private brand penetration, while further solidifying our position as the largest omni-channel western and work wear retailer in the U.S.”

The company will report actual third quarter fiscal 2016 results on February 2, 2016 and will then update its full year guidance.

ICR Conference 2016

The Company will be presenting at the ICR Conference 2016 held at the JW Marriott Orlando Grande Lakes in Orlando, Florida, on Tuesday, January 12, 2016 at 1:00 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.

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