Boot Barn (NYSE:BOOT) Shares Up 11.8% After Earnings Beat

Key Points

• Boot Barn shares jumped 11.8% after fiscal second-quarter earnings of $1.73 per share beat estimates by $0.10. Revenue rose 15.1% year over year to $581.8 million, slightly exceeding expectations.
• Management raised its store-opening target to as many as 80 locations and announced a fiscal 2027 sales goal of approximately $2.6 billion. The board also authorized an additional $400 million share-repurchase program.
• Despite the earnings beat, the company trimmed parts of its full-year outlook and issued weaker-than-expected quarterly revenue guidance, prompting some analysts to lower price targets and Zacks to downgrade the stock to “hold.”

Boot Barn Holdings, Inc. (NYSE:BOOT - Get Free Report)'s stock price rose 11.8% on Thursday following a stronger than expected earnings report. The company traded as high as $125.78 and last traded at $126.6670. Approximately 234,930 shares traded hands during mid-day trading, a decline of 67% from the average session volume of 711,539 shares. The stock had previously closed at $113.30.

The company reported $1.73 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.63 by $0.10. The company had revenue of $581.81 million for the quarter, compared to the consensus estimate of $580.80 million. Boot Barn had a net margin of 10.35% and a return on equity of 18.78%. Boot Barn's quarterly revenue was up 15.1% compared to the same quarter last year. During the same quarter in the previous year, the company earned $1.37 EPS.

Trending Headlines about Boot Barn

Here are the key news stories impacting Boot Barn this week:

• Positive Sentiment: Boot Barn reported fiscal Q2 revenue of $581.8 million, up 15.1% year over year and slightly above estimates. Adjusted earnings were $1.73 per share, exceeding the $1.63 consensus, while operating cash flow rose 55% to $39.9 million. Boot Barn earnings report
• Positive Sentiment: Management raised its full-year store-opening target to as many as 80 locations and outlined a fiscal 2027 sales goal of approximately $2.6 billion. Boot Barn Workforce also generated about $100 million in commercial sales last fiscal year, supporting the company’s expansion strategy. Boot Barn fiscal 2027 outlook
• Positive Sentiment: The board authorized an additional $400 million for share repurchases, potentially supporting earnings per share and signaling confidence in the company’s long-term prospects. Boot Barn share repurchase authorization
• Neutral Sentiment: Robert W. Baird lowered its price target from $160 to $145 but retained an “outperform” rating, leaving the target above the recent trading level. Baird Boot Barn rating
• Negative Sentiment: Despite the quarterly beat, Boot Barn trimmed portions of its fiscal-year outlook and provided quarterly revenue guidance that fell short of expectations, raising concerns about demand, margins, or the pace of growth. Boot Barn trims guidance
• Negative Sentiment: Zacks Research downgraded Boot Barn from “strong buy” to “hold,” adding to caution following the guidance reduction. Zacks Boot Barn rating

Analyst Upgrades and Downgrades

A number of equities analysts have commented on the stock. Zacks Research cut shares of Boot Barn from a "strong-buy" rating to a "hold" rating in a research note on Tuesday. TD Cowen reissued a "buy" rating on shares of Boot Barn in a research report on Thursday. Weiss Ratings cut shares of Boot Barn from a "hold (c+)" rating to a "hold (c)" rating in a research report on Friday, October 23rd. BTIG Research lowered their price target on Boot Barn from $215.00 to $195.00 and set a "buy" rating for the company in a research report on Thursday. Finally, Citigroup reduced their target price on Boot Barn from $205.00 to $180.00 and set a "buy" rating on the stock in a research note on Tuesday, October 13th. Thirteen equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the stock. According to data from MarketBeat, Boot Barn presently has a consensus rating of "Moderate Buy" and a consensus price target of $194.46.

Institutional Investors Weigh In On Boot Barn

Several institutional investors have recently modified their holdings of the stock. BlackRock Inc. bought a new position in shares of Boot Barn during the 2nd quarter worth $840,629,000. Congress Asset Management Co. grew its holdings in Boot Barn by 0.9% during the third quarter. Congress Asset Management Co. now owns 804,659 shares of the company's stock worth $96,937,000 after acquiring an additional 7,040 shares during the period. Wellington Management Group LLP increased its stake in shares of Boot Barn by 12.2% in the 2nd quarter. Wellington Management Group LLP now owns 773,749 shares of the company's stock valued at $127,104,000 after purchasing an additional 84,250 shares in the last quarter. Bank of America Corp DE grew its holdings in shares of Boot Barn by 114.6% during the first quarter. Bank of America Corp DE now owns 655,374 shares of the company's stock worth $95,921,000 after buying an additional 349,985 shares in the last quarter. Finally, Dimensional Fund Advisors LP boosted its position in shares of Boot Barn by 1.5% during the 1st quarter. Dimensional Fund Advisors LP now owns 645,342 shares of the company's stock valued at $94,440,000 after acquiring an additional 9,816 shares during the last quarter.

Boot Barn Trading Up 11.1%

The stock has a market capitalization of $3.81 billion, a PE ratio of 15.94, a price-to-earnings-growth ratio of 0.74 and a beta of 1.76. The firm's fifty day moving average is $132.49 and its 200-day moving average is $159.01.

Boot Barn Company Profile

Boot Barn Holdings, Inc is a specialty retailer focused on Western and work-related apparel, footwear and accessories. The company sells products including cowboy boots, work boots, jeans, shirts, hats, outerwear, belts and other accessories from a range of national and private-label brands.

Boot Barn serves customers through a network of retail stores across the United States, as well as through its e-commerce platform. Its merchandise is marketed to Western lifestyle customers, workers who need durable clothing and footwear, and consumers participating in activities such as rodeo, riding and outdoor recreation.

The company traces its beginnings to 1978 and is headquartered in Irvine, California.

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