Boot Barn Holdings, Inc (BOOT) swung to a net profit for the quarter ended Sep. 24, 2016. The company has made a net profit of $0.48 million, or $ 0.02 a share in the quarter, against a net loss of $3.34 million, or $0.13 a share in the last year period. On the other hand, adjusted net income for the quarter stood at $0.48 million, or $0.02 a share compared with $1.21 million or $0.04 a share, a year ago.

Revenue during the quarter grew 3.28 percent to $133.97 million from $129.71 million in the previous year period. Gross margin for the quarter contracted 45 basis points over the previous year period to 27.20 percent. Operating margin for the quarter period stood at positive 3.32 percent as compared to a negative 0.32 percent for the previous year period.

Operating income for the quarter was $4.44 million, compared with an operating loss of $0.41 million in the previous year period.

However, the adjusted operating income for the quarter stood at $4.44 million compared to $5.78 million in the prior year period. At the same time, adjusted operating margin contracted 114 basis points in the quarter to 3.32 percent from 4.46 percent in the last year period.

Jim Conroy, chief executive officer, commented, "I am pleased with our financial performance during the second quarter, in which we grew net sales, achieved positive same store sales and reported diluted earnings per share of $0.02, which met our expectations for the quarter. We believe our positive same store sales reflect the strength of the Boot Barn brand as well as the strategies we put in place to mitigate external pressures in oil and commodity driven markets. While this pressure has not abated, and consumer retail trends remain variable, we are optimistic about the second half of the year."

For fiscal year 2017, Boot Barn Holdings, Inc forecasts net income to be in the range of $17.70 million to $19.60 million. The company expects operating income to be in the range of $43.70 million to $46.80 million. The company projects diluted earnings per share to be in the range of $0.66 to $0.73.

For the third-quarter, The company projects diluted earnings per share to be in the range of $0.38 to $0.43.

The company has spent $10.48 million cash to meet investing activities during the first six months as against cash outgo of $166.24 million in the last year period.

Cash flow from financing activities was $7.67 million for the first six months, down 95.66 percent or $168.95 million, when compared with the last year period.

Cash and cash equivalents stood at $11.06 million as on Sep. 24, 2016, up 48.34 percent or $3.61 million from $7.46 million on Sep. 26, 2015.
 

Working capital increases sharply
Boot Barn Holdings, Inc has recorded an increase in the working capital over the last year. It stood at $53.92 million as at Sep. 24, 2016, up 31.79 percent or $13.01 million from $40.91 million on Sep. 26, 2015. Current ratio was at 1.32 as on Sep. 24, 2016, up from 1.25 on Sep. 26, 2015.

Cash conversion cycle (CCC) has decreased to 33 days for the quarter from 102 days for the last year period. Days sales outstanding were almost stable at 3 days for the quarter, when compared with the last year period.

Days inventory outstanding has decreased to 89 days for the quarter compared with 152 days for the previous year period. At the same time, days payable outstanding went up to 58 days for the quarter from 53 for the same period last year.