The company also announced higher long-term store potential of 1,200 locations across the United States, up from its previous estimate of 900.
Boot Barn Holdings has delivered a strong second quarter of FY26 with net sales increasing 18.7 percent to $505.4 million and same-store sales increasing 8.4 percent. Net income rose 43 percent to $42.2 million, driven by higher margins and controlled costs. The company raised its full-year outlook, forecasting up to $2.24 billion in sales and 70 new stores, while expanding its potential U.S. stores to 1,200.
Gross profit expanded 20.4 percent to $184.1 million, representing 36.4 percent of net sales, up 50 basis points (bps) from the same period last year. The improvement was primarily attributed to an 80 basis point increase in merchandise margin, driven by economies of scale in purchasing and higher penetration of exclusive brands, partially offset by new store occupancy costs, Boot Barn said in a news release.
Selling, general and administrative (SG&A) expenses totaled $127.7 million, or 25.3 percent of sales, compared to 26.5 percent last year, reflecting leverage from higher sales and lower corporate and legal costs. Operating income grew 41 percent to $56.4 million, representing an operating margin of 11.2 percent, up from 9.4 percent a year ago.
Net income for the quarter increased to $42.2 million, or $1.37 per diluted share, compared to $29.4 million, or $0.95 per diluted share, in the second quarter of FY25. The effective tax rate decreased from 27.4 percent to 25.8 percent, helped by reduced non-deductible expenses.
E-commerce sales accounted for 9.3 percent of total net sales during the quarter, underscoring the brand’s growing digital push. Preliminary data for October 2025 showed that consolidated same-store sales increased 9.3 percent, and e-commerce increased 24.1 percent.
“We had another strong quarter with high single-digit consolidated same-store sales growth and total sales growth of 19 percent, demonstrating the continued resilience and broad appeal of our brand. This strength was evident across all major merchandise categories and geographies, with both our retail stores and e-commerce channels performing well. Importantly, we expanded our merchandise margin by 80 basis points, while maintaining disciplined expense control, driving improved revenue. 41 percent in operating income and a 180 basis point increase in operating margin to 11.2 percent,” he said John Hazen, Chief Executive Officer (CEO) of Boot Barn Holdings.
“Following collaborative work with a third party, we are pleased to announce that our updated market analysis reveals a significantly expanded total addressable market (TAM) and store count potential. Our TAM is now estimated at $58 billion, with market growth across all categories,” Hazen added.
For the first six months (6M) of FY26, Boot Barn’s net sales increased 18.9 percent to $1.009 billion, driven by a consolidated same-store sales increase of 8.9 percent. Same-store retail sales rose 8.6 percent, while e-commerce grew 11.8 percent. Gross profit rose to $381.4 million (37.8 percent of sales), up from $309.6 million (36.5 percent) last year.
Operating income in 6 months increased 40.9 percent to $127.1 million, or 12.6 percent of sales, compared to $90.2 million, or 10.6 percent, a year earlier. Net income rose to $95.6 million ($3.11 per diluted share) from $68.3 million ($2.21 per diluted share).
As of September 27, 2025, the company had $65 million in cash and no borrowings outstanding under its $250 million revolving credit facility. Average inventory per store increased approximately 1 percent on a same-store basis.
For the fiscal year ending March 28, 2026, Boot Barn has raised its full-year outlook, projecting net sales between $2.197 billion and $2.235 billion, representing year-over-year growth of 15 to 17 percent. Same-store sales are expected to increase 4 to 6 percent, driven by retail growth of 3.3 to 5.3 percent and e-commerce growth of 11 to 13 percent.
Gross profit is expected to be between $818 million and $842 million, equivalent to 37.2 percent to 37.7 percent of sales, while operating income is expected to be between $277 million and $294 million, representing a margin of 12.6 percent to 13.2 percent.
Net income is expected to reach between $207.2 million and $219.6 million, translating to diluted earnings per share (EPS) of $6.75 to $7.15. The company plans capital expenditures of $125 million to $130 million and intends to open 70 new stores during the fiscal year.
For the third quarter (Q3) ending December 27, 2025, Boot Barn anticipates net sales of between $688 million and $700 million, an increase of 13 to 15 percent year-over-year, with same-store sales growth of 2.5 to 4.5 percent. Gross profit is expected to be between $265 million and $272 million (38.6 to 38.8 percent of sales), operating income between $102 million and $107 million (14.8 to 15.3 percent margin), and diluted EPS between $2.47 and $2.59.
Fiber2Fashion News Desk (SG)
