Boot Barn Holdings announced its financial results for the first fiscal quarter ended June 25, 2016.
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Net sales increased 39% to $133.4 million from $96.0 million in the prior-year period.
Net sales increased due to contributions from Sheplers which was acquired in the second quarter of fiscal 2016, a 0.4% increase in same store sales, and 17 new stores opened over the past twelve months.
Gross profit increased 32.4% to $40.8 million, or 30.5% of net sales, compared to gross profit of $30.8 million, or 32.1% of net sales, in the prior-year period, driven by the addition of the Sheplers business and 17 new stores opened over the past twelve months.
As a percentage of sales, consolidated gross margin declined primarily due to a higher percentage of historically lower-margin Sheplers sales compared to the prior-year period when the Company did not own Sheplers.
Income from operations decreased 8% to $4.5 million, compared to $4.8 million in the prior-year period.
The decrease was driven primarily by additional expenses associated with Sheplers, and higher depreciation and amortization expense associated with new stores opened, in line with the Company’s strategic growth objectives.
Excluding acquisition-related expenses of $0.9 million, adjusted income from operations was $5.7 million in the first quarter of fiscal year 2016.
The Company opened 2 new stores and ended the quarter with 210 stores in 29 states.
Interest expense was $3.6 million, an increase of $2.8 million, or $0.06 per diluted share, compared to the prior-year period, reflecting additional debt associated with the acquisition of Sheplers in the second quarter of fiscal year 2016.
Net income was $0.6 million, or $0.02 per diluted share, compared to $2.3 million or $0.08 per diluted share in the prior-year period.
Excluding acquisition-related expenses and the adjusted provision for income taxes, adjusted net income was $3.0 million or $0.11 per diluted share, in the first quarter of fiscal year 2016. ■