Boot Barn Holdings announced its financial results for the fourth quarter and fiscal year ended March 26, 2016.
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Net sales increased 45% to $149.5 million in the fourth quarter of fiscal year 2016, from $103.3 million in the prior-year period. Net sales increased due to contributions from recently acquired Sheplers and 22 new stores opened during fiscal year 2016, partially offset by a decrease of 1.2% in consolidated same store sales.
Adjusted gross profit was $43.9 million or 29.4% of net sales (on a GAAP basis, gross profit was $42.4 million or 28.4% of net sales) in the fourth quarter of fiscal year 2016, an increase of $9.9 million, or 29.2%, from gross profit of $34.0 million, or 32.9% of net sales, in the prior-year period.
Adjusted income from operations was $7.7 million in the fourth quarter of fiscal year 2016, a decrease of 8.5%, compared to $8.4 million in the prior-year period, driven primarily by higher depreciation and amortization expense, additional expenses associated with Sheplers, and the higher shrink adjustment.
During the fourth quarter, the company opened four Boot Barn stores and closed two stores, ending the quarter with 208 stores in 29 states.
Pro forma adjusted net income was $2.5 million, or $0.09 per diluted share, in the fourth quarter of fiscal year 2016, compared to $4.6 million, or $0.17 per diluted share, in the prior-year period.
The decrease is primarily the result of an additional $2.4 million, or $0.05 per diluted share, of pro forma adjusted interest expense combined with $0.01 per diluted share of higher shrink recorded in the fourth quarter of fiscal year 2016.
On a GAAP basis, net income was $1.0 million, or $0.04 per diluted share, in the fourth quarter of fiscal year 2016, compared to $2.6 million, or $0.10 per diluted share in the prior-year period.
Results for the fiscal year ended March 26, 2016
Net sales increased 41% to $569.0 million from $402.7 million in fiscal year 2015. Net sales increased due to contributions from recently acquired Sheplers, 22 new stores opened during fiscal year 2016, partially offset by a decrease of 0.1% in consolidated same store sales.
Adjusted gross profit was $178.0 million or 31.3% of net sales (on a GAAP basis, gross profit was $173.2 million or 30.4% of net sales), an increase of $43.2 million, or 32.1%, from gross profit of $134.8 million, or 33.5% of net sales, in fiscal year 2015.
Adjusted income from operations was $42.7 million in fiscal year 2016, an increase of 20.4%, compared to $35.4 million in fiscal year 2015. On a GAAP basis, income from operations was $30.2 million, compared to $35.4 million in fiscal year 2015.
The company acquired 25 Sheplers stores, opened 22 Boot Barn stores, closed six Sheplers and two Boot Barn stores, and ended the period with 208 stores in 29 states.
Pro forma adjusted net income was $18.7 million, or $0.69 per diluted share, in fiscal year 2016, compared to $19.0 million, or $0.72 per diluted share in fiscal year 2015.
The decrease is primarily due to an additional $6.7 million, or $0.15 per diluted share of pro forma adjusted interest expense in fiscal year 2016.
On a GAAP basis, net income was $9.9 million, or $0.37 per diluted share, compared to net income of $13.7 million, or $0.54 per diluted share, in fiscal year 2015. ■