IRVINE, Calif. - Boot Barn (NYSE:BOOT) Holdings, Inc. (NYSE: BOOT) reported a 13.7% increase in net sales for the second fiscal quarter ended September 28, 2024, reaching $425.8 million. The retailer, specializing in western and work-related apparel, also announced a CEO transition with Jim Conroy stepping down effective November 22, 2024, to join Ross Stores, Inc. (NASDAQ: NASDAQ:ROST) as their CEO.
John Hazen, currently Chief Digital Officer at Boot Barn, will take over as Interim CEO on the same date. Peter Starrett, Chairman of the Board, will become Executive Chairman to provide oversight during the transition period. The company credited Conroy for transforming Boot Barn from a regional chain to a national leader with 426 stores.
The financial results showed net income rising to $29.4 million, or $0.95 per diluted share, compared to $27.7 million, or $0.90 per diluted share, for the same quarter in the previous year. Same store sales increased by 4.9%, driven by a 4.3% increase in retail stores and a more significant 10.1% increase in e-commerce sales.
The company opened 15 new stores during the quarter, contributing to the increased sales figures. Gross profit also grew to $152.9 million, or 35.9% of net sales, compared to $133.9 million, or 35.8% of net sales, in the prior-year period. Selling, general, and administrative expenses rose, primarily due to the expansion and associated costs.
Looking ahead, Boot Barn provided updated guidance for the fiscal year ending March 29, 2025, with total sales expected to be between $1.874 billion and $1.907 billion. This guidance excludes any benefits or costs related to the CEO transition.
The company's focus remains on opening new stores, with a target of 60 new locations by the end of the fiscal year, and continued growth in both retail and e-commerce sales. The strategic initiatives set in place are expected to further drive sales and earnings growth under the new leadership.
The information is based on a press release statement from Boot Barn Holdings, Inc.
In other recent news, Ross Stores has made several significant announcements. The company has named James Conroy as its new CEO, effective February 2025, following an extensive search. Conroy brings over 25 years of retail industry experience and will succeed Barbara Rentler, who will transition to an advisory role after nearly 40 years with the company.
Ross Stores also reported fiscal 2023 revenues of $20.4 billion and recently announced key leadership changes within its merchandising teams, with Karen Fleming and Karen Sykes stepping into the roles of President and Chief Merchandising Officer at Ross Dress for Less and dd's DISCOUNTS respectively. These changes are aimed at reinforcing the company's strategic execution and market share growth.
In terms of financial performance, Ross Stores reported a 7% increase in total sales for the second quarter, reaching $5.3 billion. The company also saw a 4% rise in comparable store sales. Earnings per share for the quarter were $1.59, up from $1.32 in the same quarter the previous year.
Loop Capital responded to these developments by raising its price target for Ross Stores from $170 to $190, maintaining a Buy rating. This decision follows Ross Stores' upward revision of their full-year earnings per share forecast by approximately 19 cents. The company's projections for comparable store sales growth of 2-3% for the third and fourth quarters align with both Loop Capital's and consensus estimates.
In addition, Citi reaffirmed its positive stance on Ross Stores, maintaining a Buy rating and a price target of $179. The endorsement followed a series of investor meetings in London with Ross Stores' CFO Adam Orvos and GVP of Investor Relations Connie Kao, where the company's strategic plans and financial health were discussed.
InvestingPro Insights
As Jim Conroy prepares to take the helm at Ross Stores, Inc. (NASDAQ: ROST), investors might be curious about the financial health of his new company. According to InvestingPro data, Ross Stores boasts a robust market capitalization of $47.62 billion, reflecting its strong position in the specialty retail sector. The company's revenue growth of 9.81% over the last twelve months indicates a healthy expansion trajectory, aligning well with Boot Barn's own growth story.
InvestingPro Tips highlight Ross Stores' financial stability and growth potential. The company has maintained dividend payments for 31 consecutive years, demonstrating a commitment to shareholder returns that mirrors Boot Barn's focus on value creation. Additionally, Ross Stores operates with a moderate level of debt and has liquid assets exceeding short-term obligations, suggesting a solid financial foundation as Conroy steps into his new role.
Another InvestingPro Tip reveals that 13 analysts have revised their earnings upwards for Ross Stores' upcoming period, potentially signaling positive expectations for the company's performance under new leadership. This optimism is further supported by the company's Price to Earnings Growth (PEG) ratio of 0.73, indicating that it may be undervalued relative to its growth prospects.
For investors seeking a deeper understanding of Ross Stores' potential, InvestingPro offers 11 additional tips, providing a comprehensive analysis of the company's financial health and market position.
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