Boot Barn Cuts Outlook but Raises Store Opening Plan to 75-80

Boot Barn grew second-quarter net sales 15.1% year over year to $581.8 million, yet still lowered its full-year outlook and raised its store opening plan at the same time, according to a Wednesday press release.

Same-store sales (revenue from locations open at least a year) increased 1.4%, with e-commerce contributing more growth than physical retail locations.

Why did the retailer lower its outlook?

Boot Barn now expects total sales growth of 14% to 15% for the fiscal year, down from its previous range of 14% to 16%. It also cut its consolidated same-store sales growth expectation to a range of 0.8% to 2%, from the prior 2% to 4%.

At the same time, the company raised its store opening outlook. Boot Barn now plans to open 75 to 80 locations in fiscal year 2027, up from a previous expectation of 70.

A lowered outlook, a hit to the women's boot category and unusually warm weather are not stopping the expansion.

CEO John Hazen said the company applies a consistent financial test to every new door. "While recent results demonstrate the opportunity to outperform our projections, we continue to underwrite new locations to approximately $3.2 million in first-year sales, consistent with our historical approach," Hazen said on a call with analysts Wednesday.

The CEO set a long-term ceiling far above the current fleet. "With a long-term opportunity to expand to 1,200 locations nationwide, we remain confident in our ability to sustain new store growth for years to come," he said.

What is Boot Barn changing in stores?

The retailer has reworked merchandise displays to drive sales. It moved premium denim to the front of the store and shifted value-focused denim offerings to the back.

The western boots business for both men and women dragged in the latest quarter, the executive noted. In response, Boot Barn is refreshing its assortment of women's boots with a broader selection of styles and colors for the holiday season.

What do analysts expect for Q3?

Boot Barn's third-quarter outlook came in below some analyst expectations. The retailer anticipates Q3 sales growth of 11% to 14%, but a potential same-store sales decline of up to 1%.

TD Cowen analysts flagged the timing of any recovery. "We don't anticipate much improvement until Dec as initiatives take time to scale but need to see comps inflect exiting 3Q to maintain confidence in the historical durability of the [business]," the analysts said in a Wednesday note.

The analysts still see positives in the model. "Meanwhile, we're constructive on new store ramps, cost control & buybacks," they said.

For marketers, the takeaway is a chain betting on physical expansion as its demand signals soften, using merchandising resets and a refreshed women's boots assortment to defend same-store sales while December decides whether the comp trajectory turns.

By Elena Vasquez