BOOT - Boot Barn slides after higher costs dent profit outlook

Boot Barn Holdings Holdings ( NYSE: BOOT ) traded lower during the postmarket session on Wednesday after profit guidance was below expectations.

The retailer reported same store sales fell 3.6% during Q4, comprised of a decrease in retail store same store sales of 0.8% and a decrease in e-commerce same store sales of 15.2%.

Gross profit declined to 36.5% of sales vs. 39.4% a year ago. The decrease in gross profit rate was driven primarily by a 190 basis-point decrease in merchandise margin and 100 basis points of deleverage in buying, occupancy and distribution center costs. The decline in merchandise margin rate was driven primarily by a 180 basis-point headwind from higher freight expense.

Selling, general and administrative expenses as a percentage of net sales increased by 190 basis points during the quarter, primarily as a result of higher store-related expenses and store payroll.

Net income came in at $52.8M vs. $69.2M a year ago.

Looking ahead, Boot Barn full-year EPS of $5.51 to $5.60 vs. $5.76 consensus.

Shares of Boot Barn were down 5.53% in postmarket trading to $70.26 following the earnings report.

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