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The company reported EPS of $1.51 on revenue of $425.7 million for its fourth fiscal quarter, which compares to the average analyst estimate for earnings of $1.46 on revenue of $442.5M.
“We experienced double-digit total sales growth while expanding product margin for the 7th consecutive year. While our e-commerce business faced top-line sales pressure, our stores achieved positive same store sales growth for the year as they cycled a remarkable 57% comp store growth in fiscal 2022,” said Jim Conroy, president and chief executive officer.
Same-store sales fell 5.5% as retail store same-store sales dropped by 3.3% while e-commerce same-store sales decreased by 18.4%.
For this quarter, the company sees EPS of $0.82 on revenue of $360.5M, missing the consensus for earnings of $1.17 on sales of $388.7M.
BOOT slashed full-year guidance so it now expects EPS of $4.85 on revenue in the range of $1.69-1.723B, missing the consensus for earnings of $5.52 per share on sales of $1.67B.
Citi analysts slashed the price target by $9 to $84 per share as the FQ4 print was “underwhelming”, despite the analyst being already prepared for a miss.
“We lower EPS to the low-end of the range reflecting more conservatism on the merchandise margin line than BOOT’s guidance. We recognize near-term stock weakness is justified given the negative earnings revision, but we stay Buy-rated with a $84 TP (=16x FY25 EPS) as the discounted valuation vs. history still provides an attractive risk/reward,” analysts wrote.
BofA analysts moved to an $80 per share price target but remain optimistic on the long-term growth “despite soft near-term demand.”
“Although results came in below our expectations, we remain bullish on BOOT’s longterm potential to take share in the highly fragmented western wear market. We continue to see growing interest from investors given BOOT’s low valuation, high mix of necessities, and store growth potential.”
