Boot Barn (BOOT), which is the largest retail chain devoted to western and work-related footwear/apparel, is trading modestly higher. This is after trading sharply higher earlier this morning after closing out FY19 on a very strong note.
Last night, BOOT reported Q4 (Mar) non-GAAP EPS of $0.32. The GAAP EPS result was $0.30, but we backed out a $0.02 tax expense related to a return to provision adjustment. It's not entirely clear if it should be backed out but we are leaning that way. . Either way, it was a solid EPS beat for Boot Barn. Revenue rose 12.9% yr/yr to $192.8 mln, which was above prior guidance of $186-189 mln.
The consistently impressive metric with Boot Barn is its same store comps. MarQ comps increased +8.7% vs prior guidance of +5-7%, this includes an increase in retail store comps of +9.8% and an increase in e-commerce comps of +3.3%. Full year FY19 comps came in at +10.0%, including +9.5% at retail stores and +12.2% for ecommerce comps.
In terms of guidance, it looks like BOOT is getting FY20 off to a good start as Q1 (Jun) EPS is expected at $0.20-0.22 while revenue should be $178-180 mln. Both metrics are above market expectations. BOOT also guided to JunQ comps of approximately +6%. Full year (FY20) EPS is expected at $1.42-1.50, which is slightly below market expectations, but BOOT tends to be a little conservative on guidance. FY20 same store comps are expected at approximately +5%. Also, BOOT expects to open or acquire 25 stores in FY20.
So, what drove the strong results in MarQ? CEO Jim Conroy credits BOOT's "enhanced merchandise assortments featuring a broader offering of exclusive brands, multiple omni-channel initiatives aimed at improving the shopping experience, and new marketing programs." A good example of this was the mid-September 2018 successful launch of a new exclusive brand, Idyllwind, Fueled by Miranda Lambert. BOOT also recent launched its Hawx work boots and Cody James boots. Conroy also cited another successful rodeo season in Texas.
Overall, this was another very good quarter for Boot Barn. The same store comps continue to be the star of the show and that was the case again in MarQ. Looking ahead, BOOT cautions that it will be lapping more difficult comps in the coming quarters (last year's comps: JunQ +11.6%, SepQ +11.3%, DecQ +9.2%) as its comp performance in FY19 was heavier weighted in the first half of the fiscal year.
However, it did say that thus far in JunQ, comps are running at +7.5% so its +6% comp guidance looks pretty doable. The stock had jumped as high as +12% in the pre-market, but the overall market weakness appears to be causing a pullback since then.