Boot Barn Holdings, Inc.

First-quarter net sales increased 18% to $594 million. Consolidated same-store sales rose 4.7%, with retail store comps up 3.8% and e-commerce comps up 13.4%. Merchandise margin increased 220 basis points and gross profit rate increased 130 basis points; SG&A was $149 million, or 25.2% of sales, 10 basis points higher than last year but 30 basis points better than guidance. Operating income was $91 million, or 15.3% of sales, and EPS was $2.29 versus $1.74 a year ago. For the full year, management now expects sales of $2.6 billion, same-store sales up 4%, merchandise margin of about 52.2% of sales, gross profit rate of about 38.7%, operating income of $374 million, and EPS of $9.23 at the high end. For Q2, the high end of guidance calls for sales of $582 million, comps up 2%, operating income of $67 million, and EPS of $1.65. Tariff refunds contributed $14.7 million to Q1 merchandise margin and are expected to contribute $17.8 million for the full year, including an estimated $0.46 EPS benefit.

John Hazen said the quarter reflected broad-based strength across the business, with especially strong performance in new stores, work boots, and e-commerce. He emphasized that the work-boot business has been intentionally reinvigorated through merchandising, marketing, and brand investments, and he framed the mix shift toward third-party work boots as a positive sign of customer demand. He also said the company remains focused on exclusive brands, women’s boots, denim, TikTok Shop, and store traffic, while remaining optimistic about another year of profitable growth.

Jim Watkins focused on the mechanics behind the quarter and the guide, especially tariff refunds, margin flow-through, and capital allocation. He detailed that Q1 EPS included a $0.38 tariff-refund benefit, made up of a $14.7 million merchandise-margin benefit and $0.5 million of tariff-related interest income, and said full-year tariff refunds are expected to add $17.8 million to merchandise margin and $0.46 to EPS. He also noted $139 million in cash, no draws on the credit line, $25 million of share repurchases in the quarter, and a completed amendment that doubled the revolver to $500 million and extended maturity to 2031. On expenses and balance sheet items, he cited SG&A of 25.2% of sales, inventory up 16% year over year to $900 million, and net capital expenditures still expected at $130 million.

Analysts focused on the sharp deceleration in July, asking whether weak traffic was tied to softer Western demand, event calendars, the World Cup, or macro pressure. Management said July weakness was broad-based across geographies, driven by fewer stadium concerts and World Cup distraction, and not by weather, oil, or a K-shaped customer. Another key line of questioning was around work boots, with management saying growth is coming from both lace-up and pull-on, third-party brands, and a deliberate remerchandising effort rather than a single macro driver. Questions also centered on exclusive brand penetration, tariffs, freight, and the Q2 guide; management said exclusive brand penetration is now expected to be flat to slightly down for the year, Q2 guidance was built off July plus a modest uplift, and freight/tariff assumptions are embedded at current levels.