Boot Barn Holdings Inc. (BOOT) stock plunged 9.37% in the pre-market session on Friday, despite the company reporting strong third-quarter fiscal 2025 results and raising its full-year guidance.

The Western apparel and work footwear retailer saw its revenue increase by 16.9% year-over-year to $608 million in the third quarter, driven by a robust 8.6% growth in consolidated same-store sales. Earnings per diluted share came in at $2.43, surpassing analysts' expectations and representing a significant increase from $1.81 in the prior-year period.

During the quarter, Boot Barn witnessed broad-based growth across all major merchandise categories and geographies. The company attributed this performance to factors such as better inventory availability, supply chain efficiencies, and effective marketing efforts targeted at different customer segments.

Encouraged by the strong third-quarter results, Boot Barn raised its full-year guidance for fiscal 2025. The company now expects total sales to reach $1.92 billion, representing a 15% increase over the previous fiscal year. Additionally, consolidated same-store sales are projected to grow by 5.9%, with e-commerce sales expected to rise by 10.2%.

Boot Barn's management remains optimistic about the company's prospects, citing plans to continue expanding its store base by opening 60 new stores in fiscal 2025. The company also expects merchandise margin expansion to continue, driven by factors such as exclusive brand penetration, better buying economies of scale, and ongoing supply chain efficiencies.