Boot Barn Holdings, Inc. — Second Quarter Fiscal Year 2027 Earnings Summary

Financial Performance:

• Net sales increased 15.1% to $581.8 million for the quarter ended September 26, 2026, compared to $505.4 million in the prior-year period.
• Consolidated same store sales increased 1.4% for the quarter, with retail store same store sales up 1.0% and e-commerce same store sales up 5.2%.
• Gross profit was $216.5 million (37.2% of net sales), up from $184.1 million (36.4%) in the prior year; merchandise margin rate increased 190 basis points.
• Selling, general and administrative (SG&A) expenses were $146.2 million (25.1% of net sales), compared to $127.7 million (25.3%) in the prior year.
• Income from operations increased $13.8 million to $70.2 million (12.1% of net sales), compared to $56.4 million (11.2%) in the prior year.
• Net income was $52.5 million, or $1.73 per diluted share, compared to $42.2 million, or $1.37 per diluted share, in the prior year (a 26.3% increase).
• For the six months ended September 26, 2026, net sales increased 16.4% to $1.175 billion, and net income was $122.6 million, or $4.02 per diluted share.
• Cash and cash equivalents were $97 million as of September 26, 2026.
• Zero was drawn under the $500 million revolving credit facility as of the quarter end.
• Average inventory per store increased approximately 3.4% on a same-store basis compared to September 27, 2025.

Guidance and Future Outlook:

• Updated full-year fiscal 2027 guidance expects total sales of $2.565 billion to $2.593 billion (14% to 15% growth over Fiscal 2026).
• Full-year fiscal 2027 consolidated same store sales growth is guided at 0.8% to 2.0%.
• Full-year fiscal 2027 merchandise margin is guided between $1.343 billion and $1.357 billion (approx. 52.3% of sales), including an estimated $17.6 million benefit from tariff refunds.
• Full-year fiscal 2027 net income per diluted share is guided at $8.72 to $9.00 (19% to 22% growth over Fiscal 2026), including an estimated $0.45 benefit from tariff refunds.
• The company expects to open 75 to 80 stores in fiscal 2027.
• Third quarter fiscal 2027 guidance expects total sales of $785 million to $802 million (11% to 14% growth).
• Third quarter fiscal 2027 consolidated same store sales are guided to decline 1.0% to grow 1.0%.
• Third quarter fiscal 2027 net income per diluted share is guided at $3.03 to $3.19.

Business Segments and Product Lines:

• The company opened 19 new stores during the quarter, bringing the total store count to 584 as of September 26, 2026.
• E-commerce same store sales growth outpaced retail store same store sales growth in the quarter (5.2% vs. 1.0%).
• New stores continue to exceed expectations, with recent openings generating sales above original projections.
• The company is preparing for the holiday season with refreshed merchandise assortments, improved in-store presentations, and a significantly expanded national marketing campaign.
• The company is leveraging momentum in its work business and the relaunch of Boot Barn Workforce.

Market and Competitive Landscape:

• Boot Barn is identified as the nation's leading lifestyle retailer of western and work-related footwear, apparel, and accessories.
• The company operates 584 stores in 49 states as of the quarter end.
• Tariff refunds contributed to margin expansion, providing a 130 basis-point benefit to merchandise margin in the quarter and a 40 basis-point benefit in the six-month period.

Risks and Challenges:

• Forward-looking statements note risks including decreases in consumer spending, local economic conditions, and changes in consumer preferences.
• Risks include the impact of import tariffs, trade restrictions, and changes to U.S. or other countries' trade policies on product costs.
• Risks include the ability to effectively execute on its growth strategy and maintain strong brand image.
• Risks include the ability to compete effectively, maintain relationships with key suppliers, and improve/expand exclusive product offerings.

Management Commentary and Tone:

• CEO John Hazen expressed pleasure with second quarter results, citing continued revenue growth and merchandise margin expansion.
• Management highlighted confidence in the company's long-term expansion opportunity and the growing national reach of the Boot Barn brand.
• Management noted that new stores are exceeding expectations and expressed excitement about the holiday season and work business momentum.

Other Key Points:

• The Board of Directors authorized an additional $400 million under the existing share repurchase program on October 21, 2026.
• Following the authorization increase, approximately $468 million remained available for future share repurchases.
• During the thirteen weeks ended September 26, 2026, the company repurchased 240,937 shares for an aggregate price of $35 million.
• During the twenty-six weeks ended September 26, 2026, the company repurchased 399,388 shares for an aggregate price of $60 million.
• Net income per diluted share included an estimated $0.05 per share benefit from tariff refunds in the quarter and $0.43 per share benefit in the six-month period.
• The effective tax rate was 25.8% for the quarter and 24.8% for the six-month period.
• Capital expenditures for fiscal 2027 are guided between $135 million and $140 million, net of estimated landlord tenant allowances of $54.4 million.