Boot Barn Holdings (NYSE: BOOT) reported Q4 EPS of $0.24, $0.08 better than the analyst estimate of $0.16. Revenue for the quarter came in at $170.8 million versus the consensus estimate of $163.65 million.

Jim Conroy, Chief Executive Officer, commented, “We are very pleased with the top-line momentum our business experienced across most of the country both in store and online during the fourth quarter. Our investments in merchandising, marketing and omni-channel fueled double-digit gains in retail comparable sales and helped return our e-commerce business to double-digit growth as well. Importantly, we held true to our full-price selling model, which combined with a meaningful increase in our exclusive brand penetration, yielded a 90 basis point improvement in merchandise margin. Our strong sales and margin performance enabled us to exceed our earnings guidance for the quarter and further solidify our industry leading position.”

Mr. Conroy continued, “I am equally excited about the business in April and May as our double-digit same store sales growth has continued. We are looking forward to fiscal 2019 and the opportunities we have to drive profitable growth, re-accelerate store expansion, build out our multi-brand e-commerce strategy, and further develop our exclusive brands.”

Regarding the change in the Board of Directors, Jim Conroy commented, “I am excited to welcome Anne MacDonald to the Board of Directors. She brings a world-class marketing background that will enhance our ability to develop both the Boot Barn brand and each of our exclusive brands. Anne’s combination of company and agency experience will further enhance the composition of our Board as we continue to grow the Boot Barn business across the country. I also want to take this opportunity to thank Fred Simmons for his contributions since December 2011. Fred’s guidance and strategic counsel have helped lead the growth of Boot Barn into a national lifestyle brand with revenue growing 300% during his tenure. On a personal note, Fred has been inspiring, motivational and uplifting to me and the entire management team.”

Operating Results for the Fourth Quarter Ended March 31, 2018

• Net sales increased to $170.8 million in the fourth quarter of fiscal year 2018 (13 weeks), from $163.0 million in the fourth quarter of fiscal year 2017 (14 weeks). Net sales increased due to a 12.1% increase in same store sales, the sales contribution from 9 stores added over the past twelve months, and sales from the Country Outfitter site that was acquired in February 2017. Sales growth was partially offset by sales from the 14th week in the prior-year period.
• Gross profit was $52.9 million, or 31.0% of net sales, in the fourth quarter of fiscal year 2018, compared to gross profit of $49.3 million, or 30.3% of net sales, in the prior-year period. Gross profit increased primarily due to increased sales and an increase in merchandise margin rate. Gross profit rate increased primarily as a result of a 90 basis point increase in merchandise margin rate partially offset by a 20 basis point increase in buying and occupancy costs. The higher merchandise margin rate was driven by more full-price selling, fewer promotions, and increased exclusive brand penetration. The increase in buying and occupancy costs as a percentage of sales resulted from fixed costs deleveraging in a 13-week quarter in the current year compared to a 14-week quarter in the prior-year period.
• Selling, general and administrative expense was $41.6 million, or 24.4% of net sales, in the fourth quarter of fiscal year 2018 compared to $41.3 million, or 25.3% of net sales, in the prior-year period. Excluding $1.2 million of store impairment charges in the prior-year period, adjusted selling, general and administrative expense was $40.1 million, or 24.6% of net sales. Selling, general and administrative expenses increased primarily as a result of increased sales, compensation expense and additional costs for both new and acquired stores. Selling, general and administrative expenses as a percentage of sales decreased as a result of expense leverage on higher sales.
• Income from operations increased 39.9%, to $11.3 million, or 6.6% of net sales, in the fourth quarter of fiscal year 2018 (13 weeks), compared to $8.1 million, or 4.9% of net sales, in the prior-year period (14 weeks). Excluding the impact of the store impairment charges in the prior-year period, adjusted income from operations was $9.2 million, or 5.7% of net sales, in the fourth quarter of fiscal year 2017.
• Net income was $6.9 million, or $0.24 per diluted share, in the fourth quarter of fiscal year 2018 (13 weeks), compared to $2.6 million, or $0.10 per diluted share, in the prior-year period (14 weeks). Excluding the impact of the store impairment charges, adjusted net income was $3.3 million, or $0.12 per diluted share, in the fourth quarter of fiscal year 2017, which was a 14-week quarter. Net income per diluted share in the fourth quarter of fiscal 2018 includes approximately $0.06 per share of tax benefit related to stock option exercises and $0.02 per share related to improved tax rate, partially offset by $0.01 per share of secondary offering costs.

Fiscal Year 2019 Outlook

For the fiscal year ending March 30, 2019 the Company expects:

• To open 23 new stores.
• Same store sales growth of mid-single digits.
• Income from operations between $52.5 million and $56.5 million.
• Interest expense of $17.0 million to $18.0 million.
• Net income of $26.2 million to $29.2 million.
• Net income per diluted share of $0.92 to $1.02 based on 28.7 million weighted average diluted shares outstanding.

For the fiscal first quarter ending June 30, 2018 the Company expects:

• Same store sales growth of approximately 10%.
• Net income per diluted share of $0.10 to $0.12 based on 28.5 million weighted average diluted shares outstanding.

GUIDANCE:

Boot Barn Holdings sees FY2019 EPS of $0.92-$1.02, versus the consensus of $0.99.

For earnings history and earnings-related data on Boot Barn Holdings (BOOT) click here.