Boot Barn opens 19 new stores, then lowers its sales forecast
A retail company grows, then says it might not grow as much as it thought
The story
Boot Barn missed Q2 sales expectations but beat earnings forecasts, and lowered its annual sales guidance despite strong growth in new stores and same-store sales.
Source: wwd.com
Our reading
Boot Barn opened 19 new stores in Q2, which is impressive, but also a bit of a red flag—how many more boots do they need to sell before they start worrying about overexpansion?
The CEO says the new stores are exceeding expectations, which is great, but also a bit strange—shouldn’t exceeding expectations be the baseline?
They’re lowering their yearly sales forecast, which is a bit like saying, ‘We’re doing better than last year, but not as well as we thought.’ they still expect to grow by 14 percent, which is a lot of boots to sell.
