Boot Barn Holdings Inc (NYSE:BOOT), a leading lifestyle retailer of western and work-related footwear, apparel, and accessories, stock rose 1.08% (As on May 15, 11:22:46 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 24.  In the year, revenue showed modest growth despite experiencing a mid-single digit decline in consolidated same store sales and cycling a 53-week fiscal year. The company also grew exclusive brand penetration by 370 basis points which contributed to merchandise margin expansion. Gross margin was 35.9 percent of net sales in the quarter, compared to 36.6 percent of net sales in the prior-year Q4 period. The 70 basis-points decrease in gross margin was said to be driven primarily by 230 basis points of deleverage in buying, occupancy and distribution center costs, partially offset by a 160 basis-point increase in merchandise margin rate. The deleverage in buying, occupancy and distribution center costs was reportedly driven primarily by the higher occupancy costs of new stores, Income from operations decreased $24.5 million to $38.2 million, or 9.8 percent of net sales, compared to $62.7 million, in the prior-year period. Net income was $29.4 million, or 96 cents per diluted share, in fiscal Q4, compared to net income of $46.4 million, or $1.53 per diluted share in the prior-year Q4 period. The company opened 18 new stores in Q4, bringing its total store count to 400.

BOOT in the fourth quarter of FY 24 has reported the adjusted earnings per share of 96 cents, beating the analysts’ estimates for the adjusted earnings per share by 5 cents. The company had reported the adjusted revenue decline of 8.7 percent to $388.5 million in the fourth quarter of FY 24, beating the analysts’ estimates for revenue of $386.96 million. Gross profit as a percentage of net sales decreased slightly from 36.6% to 35.9%, primarily due to a decrease in sales, partially offset by merchandise margin expansion.

The company’s guidance for fiscal year 2025 anticipates earnings per share (EPS) in the range of $4.55 to $4.85, which is below the analyst consensus of $5.16. Revenue projections of $1.766 to $1.8 billion also fell short of the expected $1.82 billion. This cautious outlook reflects the challenges Boot Barn anticipates in the retail environment, including a potential continued cautious consumer spending pattern. For the fiscal year ahead, the company plans to open 60 new stores and anticipates a same store sales decline of approximately 3.6% to 1.6%. These projections suggest a cautious but strategic approach to growth in an uncertain retail climate.