Boot Barn stock is plunging more than 9 percent to $13.45 in the after-hours trading following the retailer’s announcement of its second quarter 2016 fiscal earnings.
The boot retailer reported earnings per share of 4 cents, which was in-line with the FactSet consensus. Net sales of $129.7 million was 50 percent higher, but was lighter than the expected $131 million.
The growth in net sales was as a result of the recently acquired Sheplers chain, which included 25 new stores. Same-store sales from the core Boot Barn business only rose 1.6 percent. The Sheplers stores sales dropped 2.3 percent in the quarter and the Sheplers e-commerce business fell 5.9 percent.
Jim Conroy, chief executive officer, commented, “I am pleased with our execution in the quarter. We significantly grew our market share through a combination of the Sheplers acquisition, 25 new stores and growth in same-stores sales. Additionally, despite facing a number of external headwinds in certain markets, the core Boot Barn business continued to grow as we achieved our 24th consecutive quarter of positive same-store sales growth. Finally, the integration of the Sheplers business is on track with the back office systems fully converted and re-branding expected to be completed before Thanksgiving.”
Boot Barn has been hurt by the layoffs in the oil patch as fewer workers are buying less workwear. The company once again said the pressures from the oil industry had affected the company.
Boot Barn closed five of the 25 Sheplers stores and opened six Boot Barn stores, while closing one Boot Barn store.
Looking ahead at the fiscal third quarter ending Dec. 26, 2015 the company expects same-store sales for Boot Barn, excluding Sheplers to be flat to low-single digits. Sheplers business is expected to increase mid-single digits in the quarter. Net income per diluted share will be in the range of $0.47 to $0.49. This is lower than the FactSet estimate of $0.51 cents per share.