Revenue during the quarter went up marginally by 2.88 percent to $199.43 million from $193.84 million in the previous year period. Gross margin for the quarter contracted 134 basis points over the previous year period to 31.77 percent. Total expenses were 89.54 percent of quarterly revenues, down from 89.58 percent for the same period last year. This has led to an improvement of 4 basis points in operating margin to 10.46 percent.

Operating income for the quarter was $20.86 million, compared with $20.19 million in the previous year period.

However, the adjusted operating income for the quarter stood at $20.86 million compared to $23.49 million in the prior year period. At the same time, adjusted operating margin contracted 166 basis points in the quarter to 10.46 percent from 12.12 percent in the last year period.

Jim Conroy, Chief Executive Officer, commented, "I am pleased that we were able to generate our third consecutive quarter of positive same store sales growth and achieve our earnings guidance. This performance is a testament to our diversified business model as we continue to find opportunities for sales growth despite the ongoing sales pressure in markets dependent on oil and other commodities. We also continue to invest in and improve our omni-channel capabilities. In the third quarter we posted our fifth consecutive quarter of double-digit growth in e-commerce and rolled out an in store touch-screen shopping tablet which enables customers to order merchandise from both our e-commerce warehouse and directly from most of our branded vendors. I am proud of the team’s efforts as we continue to build a national lifestyle brand while navigating a complicated retail environment."

For fiscal year 2017, Boot Barn Holdings, Inc forecasts net income to be in the range of $16.10 million to $16.90 million. The company expects operating income to be in the range of $41 million to $42.30 million. It projects diluted earnings per share to be in the range of $0.60 to $0.63.

For the fourth-quarter, Boot Barn Holdings, Inc forecasts net income to be in the range of $4.60 million to $5.40 million. The company expects operating income to be in the range of $11.40 million to $12.70 million and projects diluted earnings per share to be in the range of $0.17 to $0.20. 

The company has spent $17.70 million cash to meet investing activities during the nine month period as against cash outgo of $176.64 million in the last year period.

The company has spent $26.45 million cash to carry out financing activities during the nine month period as against cash inflow of $137.36 million in the last year period.

Cash and cash equivalents stood at $31.21 million as on Dec. 24, 2016, up 74.94 percent or $13.37 million from $17.84 million on Dec. 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 $72.27 million as at Dec. 24, 2016, up 55.49 percent or $25.79 million from $46.48 million on Dec. 26, 2015. Current ratio was at 1.45 as on Dec. 24, 2016, up from 1.29 on Dec. 26, 2015.

Cash conversion cycle (CCC) has decreased to 13 days for the quarter from 76 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 60 days for the quarter compared with 124 days for the previous year period. At the same time, days payable outstanding was almost stable at 50 days for the quarter, when compared with the previous year period.