Core Insights - The article compares Boot Barn (BOOT) and Deckers (DECK) to determine which stock is more attractive to value investors [1] - Boot Barn currently has a stronger Zacks Rank of 1 (Strong Buy) compared to Deckers' Zacks Rank of 2 (Buy), indicating a more favorable earnings outlook for BOOT [3][7] Valuation Metrics - Boot Barn has a forward P/E ratio of 18.99, while Deckers has a forward P/E of 22.73, suggesting that BOOT is more attractively priced [5] - The PEG ratio for Boot Barn is 0.97, indicating better value relative to its expected earnings growth compared to Deckers' PEG ratio of 1.50 [5] - Boot Barn's P/B ratio is 3.14, significantly lower than Deckers' P/B ratio of 7.72, further supporting BOOT's valuation attractiveness [6] Value Grades - Boot Barn has earned a Value grade of B, while Deckers has a Value grade of C, reflecting BOOT's superior valuation metrics [6]

Core Viewpoint - The article highlights three stocks with strong growth characteristics and buy ranks for investors to consider as of February 20 Group 1: Brinker International, Inc. (EAT) - Brinker International is a casual dining restaurant company with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 41% over the last 60 days [1] - The company has a PEG ratio of 0.55, significantly lower than the industry average of 3.96 [1] - Brinker International possesses a Growth Score of A [1] Group 2: Boot Barn Holdings, Inc. (BOOT) - Boot Barn Holdings is a lifestyle retail chain with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 7.5% over the last 60 days [2] - The company has a PEG ratio of 1.20, compared to the industry average of 1.60 [2] - Boot Barn Holdings also possesses a Growth Score of A [2] Group 3: The Greenbrier Companies, Inc. (GBX) - The Greenbrier Companies is a railroad equipment manufacturer with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 13.5% over the last 60 days [3] - The company has a PEG ratio of 0.84, compared to the industry average of 1.86 [3] - The Greenbrier Companies possesses a Growth Score of A [3]

Group 1: Brinker International, Inc. (EAT) - Brinker International is a franchisor of casual dining restaurants with a Zacks Rank 1 [1] - The Zacks Consensus Estimate for its current year earnings has increased by 45.7% over the last 60 days [1] - The company has a PEG ratio of 0.58 compared to the industry average of 4.05, indicating strong growth potential [1] - Brinker possesses a Growth Score of A, reflecting its favorable growth characteristics [1] Group 2: KT Corporation (KT) - KT Corporation is a telecommunications and platform services company with a Zacks Rank 1 [2] - The Zacks Consensus Estimate for its current year earnings has increased by 3.5% over the last 60 days [2] - The company has a PEG ratio of 0.34 compared to the industry average of 1.09, suggesting strong growth potential [2] - KT possesses a Growth Score of B, indicating solid growth characteristics [2] Group 3: Boot Barn Holdings, Inc. (BOOT) - Boot Barn Holdings is a lifestyle retail chain with a Zacks Rank 1 [3] - The Zacks Consensus Estimate for its current year earnings has increased by 7.5% over the last 60 days [3] - The company has a PEG ratio of 1.22 compared to the industry average of 1.51, indicating competitive growth potential [3] - Boot Barn possesses a Growth Score of A, reflecting its strong growth characteristics [3]

Group 1: Pilgrim's Pride (PPC) - The company is engaged in the processing, production, marketing, and distribution of frozen, fresh, and value-added chicken products [1] - It carries a Zacks Rank 1 (Strong Buy) and has seen a 2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - The PEG ratio is 0.19, significantly lower than the industry average of 0.58, and it possesses a Growth Score of A [2] Group 2: Brinker International (EAT) - The company owns, operates, develops, and franchises various restaurants under the Chili's Grill & Bar and Maggiano's Little Italy brands [2] - It also carries a Zacks Rank 1 and has experienced a 45.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - The PEG ratio is 0.63 compared to the industry average of 4.12, and it has a Growth Score of A [3] Group 3: Boot Barn (BOOT) - The company operates as a lifestyle retail chain focused on western and work-related footwear, apparel, and accessories [3] - It holds a Zacks Rank 1 and has seen a 7.5% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [3] - The PEG ratio is 1.26, which is better than the industry average of 1.50, and it also possesses a Growth Score of A [4]

Core Viewpoint - The article highlights three stocks with strong growth characteristics and buy ranks for investors to consider, emphasizing their recent earnings estimates and growth metrics. Group 1: Boot Barn (BOOT) - Boot Barn operates as a lifestyle retail chain focused on western and work-related footwear, apparel, and accessories [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a 7.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Boot Barn has a PEG ratio of 1.27, which is lower than the industry average of 1.49, and possesses a Growth Score of A [2] Group 2: Brinker International (EAT) - Brinker International owns, operates, develops, and franchises various restaurants [2] - The company also carries a Zacks Rank of 1 and has experienced a significant 45.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Brinker International has a PEG ratio of 0.64, significantly lower than the industry average of 4.07, and holds a Growth Score of A [2] Group 3: KT (KT) - KT provides telecommunication services and holds a Zacks Rank of 1 [3] - The company has seen a 3.5% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [3] - KT has a PEG ratio of 0.35, which is lower than the industry average of 1.06, and possesses a Growth Score of B [3]

Company Overview - Boot Barn (NYSE: BOOT) is experiencing rapid expansion with excellent performance in new store openings and plans to continue this growth trajectory [1]. Sales Performance - The company is achieving significant same-store sales growth, indicating strong consumer demand and effective business strategies [1].

Group 1 - Boot Barn Holdings, Inc. reported strong results for fiscal Q3 2025, with same-store sales increasing by 8.6% [1] - The company is expected to face "easier" comparisons in future quarters, which may positively impact sales performance [1] Group 2 - The analysis emphasizes a long-term investment perspective, focusing on operational aspects and the long-term earnings potential of companies [1] - The investment strategy involves holding companies regardless of short-term price movements, with a preference for a small fraction of companies being classified as a buy [1]

Core Viewpoint - Boot Barn's stock experienced a decline despite a strong Q3 financial report, which included significant year-over-year growth in net sales and net income [1][2][3]. Financial Performance - Boot Barn reported Q3 net sales of $608 million, reflecting a nearly 17% increase year-over-year, driven by a 9% growth in same-store sales [2][3]. - The company's net income for Q3 reached $75 million, marking a 35% increase, significantly outpacing net sales growth [3]. Business Growth and Strategy - Sales from exclusive brands are projected to account for nearly 39% of total full-year sales, indicating a shift towards higher-margin products [2][3]. - Boot Barn anticipates 15% annual growth for fiscal 2025, supported by an aggressive new store opening strategy, with plans to increase locations from about 450 to 900 by fiscal 2030 [4][5]. Valuation and Investment Perspective - The stock trades at approximately 30 times its earnings, which may appear high for an apparel retailer, but is justified by the company's growth trajectory [4]. - The recent stock pullback is viewed as a potential buying opportunity for long-term investors, assuming current trends continue [5].

Core Insights - Boot Barn Holdings, Inc. reported strong third-quarter fiscal 2025 results, with revenues meeting estimates and earnings exceeding expectations, showing year-over-year growth [1][2] Financial Performance - Earnings per share (EPS) reached $2.43, a 34.3% increase from $1.81 in the same quarter last year, surpassing the Zacks Consensus Estimate of $2.38 [3] - Net sales amounted to $608.2 million, reflecting a 16.9% year-over-year increase, driven by new store openings and higher same-store sales [3] - Consolidated same-store sales rose by 8.6%, with retail store sales increasing by 8.2% and e-commerce sales by 11.1% [4] Margin and Cost Analysis - Gross profit increased by 20% to $238.9 million, primarily due to higher sales and improved merchandise margins [5] - Gross margin improved by 100 basis points to 39.3%, aided by a 130-basis point increase in merchandise margin, despite a 30-basis point rise in occupancy and distribution costs [6] - Selling, general and administrative (SG&A) expenses were $139.4 million, up 12.5% year over year, but as a percentage of net sales, they declined by 90 basis points to 22.9% [7][8] Future Outlook - For the fiscal fourth quarter, Boot Barn anticipates net sales between $451 million and $460 million, indicating growth of 16.1% to 18.4% year-over-year [11] - The company expects same-store sales to increase by 5.3% to 7.8%, with retail store same-store sales projected to rise by 4.7% to 7.2% and e-commerce sales by 9.6% to 12.1% [11] - For fiscal 2025, Boot Barn plans to open 60 new stores and forecasts total revenues of $1.91 billion to $1.92 billion, up from a previous estimate of $1.87 billion to $1.91 billion [13]

Financial Data and Key Metrics Changes - Revenue increased by 17% to $608 million, with consolidated same store sales growth of 8.6% [8][22] - Earnings per diluted share rose to $2.43, up from $1.81 in the prior year period, reflecting a $0.36 increase above guidance [10][24] - Gross profit increased by 20% to $239 million, with a gross profit rate of 39.3%, up 100 basis points from the prior year [22][23] Business Line Data and Key Metrics Changes - Same store sales in brick-and-mortar increased by 8.2%, while e-commerce sales grew by 11.1% [9][22] - Merchandise margin expanded by 130 basis points, driven by supply chain efficiencies and better buying economies of scale [9][20] - Exclusive brand penetration increased by 180 basis points, building on a prior year expansion of 310 basis points [20] Market Data and Key Metrics Changes - The company opened 13 new stores in the third quarter, bringing the total to 438 stores across 46 states [11] - The company plans to open 21 additional stores in the fourth quarter, aiming for a total of 60 new stores for the fiscal year [12][31] - Active customers in the loyalty program increased to 9.4 million, a 15% increase year-over-year [17] Company Strategy and Development Direction - The company aims to double its store count in the U.S. over the next several years, indicating strong market potential [12] - Focus on expanding omnichannel leadership, with e-commerce comp sales growing significantly [17] - Continued emphasis on merchandise margin expansion through supply chain efficiencies and exclusive brand growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current business tone, with January same store sales up 8.3% [21] - The company is optimistic about maintaining momentum in sales and margins, despite potential challenges in the work boots category [55] - Management noted that inventory levels are healthy, with no significant fashion risk identified [45] Other Important Information - The company raised its full-year guidance, expecting total sales to reach $1.92 billion, representing a 15% growth over the previous fiscal year [29][31] - The effective tax rate is estimated to be 25.4% for the fourth quarter [28] Q&A Session Summary Question: Traffic and demand trends in January - Management noted an acceleration in both men's and women's Western categories, with a strong start to the fourth quarter [35][36] Question: Merchandise margin drivers - Management expects merchandise margin to increase by 120 basis points in Q4, driven by supply chain efficiencies and exclusive brand penetration [39] Question: Inventory position and risks - Management confirmed a good inventory position with lower markdown inventory compared to previous years, indicating no fashion risk [45] Question: E-commerce performance - E-commerce growth is attributed to increased traffic and effective advertising strategies, with a focus on converting online customers to in-store visits [118][120] Question: Changes in product assortment - Management is satisfied with the current product assortment and is not planning significant changes, though minor adjustments may be made to appeal to a broader customer base [74][105]