Boot Barn Holdings reported merchandise margin expansion of 220 basis points in the first quarter of fiscal 2027, exceeding guidance, and now expects full-year merchandise margin to expand by approximately 60 basis points excluding tariff refunds. The quarter's gain was driven by a 250-basis-point benefit from tariff refunds and a 60-basis-point expansion in product margin, partly offset by a 90-basis-point headwind from lapping low freight expense. Although exclusive-brand penetration came in below expectations due to stronger third-party work boots sales, stronger product margins offset the mix shift. Management projects second-quarter merchandise margin of 51.8% of sales, up 140 basis points year over year, and at the high end of fiscal 2027 guidance, margin could reach 52.2% of sales, up 130 basis points. Boot Barn shares have fallen 4.9% over three months, and the stock trades at a forward P/E of 16.21 versus the industry's 12.73, with a Zacks Rank #2 (Buy).
Boot Barn Holdings IncRaises full-year merchandise margin outlook on stronger product margins and tariff refunds.
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