Shares for Boot Barn were down nearly 10 points in after-market trading on Monday following the news that longtime president and chief executive officer Jim Conroy is stepping down next month.
According to the Irvine, Calif.-based footwear company, net sales in the second quarter of fiscal 2025 increased 13.7 percent to $425.8 million from $374.5 million in the prior-year period. This is up from the company’s expectations for the quarter, with sales forecasted to be between $405 million to $412 million, representing growth of 8.2 percent to 10 percent over the prior-year period.
Net income in the period was $29.4 million, or $0.95 per diluted share, compared to net income of $27.7 million, or $0.90 per diluted share, in the prior-year period.
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The company said in its earnings statement that the quarterly increase in net sales was the result of incremental sales from new stores and the increase in consolidated same store sales. Boot Barn opened 15 new stores in Q2, bringing its total store count to 425.
The company also gave a look into the first half results for fiscal 2025. According to the company, it saw net sales in the first six months of the year of $849.2 million, a 12.0 percent increase from $758.2 million in the prior-year period. Net income was $68.3 million, or $2.21 per diluted share, compared to net income of $61.9 million, or $2.03 per diluted share, in the prior-year period.
Conroy was upbeat about the performance in a statement. “Our team’s excellent execution has driven improving trends across all channels, store geographies, and major merchandise classifications, positioning us well for the upcoming holiday season,” he said.
In light of its second quarter results, Boot Barn is raising its guidance for the full fiscal year. Now, the company expects total sales for fiscal 2025 between $1.874 billion to $1.907 billion, representing growth of 12.4 percent to 14.4 percent over the prior year. This is up from its previous guidance of total sales for the year of $1.816 billion to $1.850 billion, representing growth of 8.9 percent to 11 percent over the prior year.
In the third quarter, Boot Barn expects total sales of $582 million to $595 million, representing growth of 11.8 percent to 14.3 percent over the prior-year period.
These results come at the same time that Conroy announced his exit from the retailer, after holding the CEO job since 2012. Conroy, 54, is leaving the retailer to become CEO of Ross Stores, effective Feb. 2, 2025. He succeeds Barbara Rentler, who has served at CEO at the off-price retailer for the last 10 years.
In his place, John Hazen, the company’s current chief digital officer, will assume the role of interim CEO, effective Nov. 22.
“As we manage through an orderly transition over the next month, I feel great about the condition of the business and am confident in the team’s ability, under John’s leadership, to execute on the four strategic initiatives and to drive future growth in sales and earnings,” Conroy added.
