Boot Barn (BOOT) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Sinc ...

Group 1 - The investment approach focuses on long-only strategies, evaluating companies from an operational and buy-and-hold perspective rather than market-driven dynamics [1] - The emphasis is on understanding the long-term earnings potential of companies and the competitive dynamics within their industries [1] - Most recommendations will be holds, indicating a cautious approach where only a small fraction of companies are considered buys at any given time [1] Group 2 - Hold articles are intended to provide valuable information for future investors and introduce a healthy skepticism in a generally bullish market [1]

Core Insights - Boot Barn Holdings, Inc. (BOOT) is trading at a forward 12-month price-to-earnings (P/E) ratio of 22.44, higher than the industry average of 18.41, indicating investor confidence in long-term growth despite trading below its one-year median P/E ratio of 24.48, suggesting a potential value opportunity [1] Price Performance - BOOT's shares have increased by 36.3% over the past year, significantly outperforming the Zacks industry's growth of 6.8%, the Retail-Wholesale sector's decline of 2.4%, and the S&P 500's increase of 13.9% during the same period [2] Stock Trading Metrics - Closing at $187.99, Boot Barn stock is 10.6% below its 52-week high of $210.25 reached on December 12, 2025, and is trading above its 200-day simple moving average of $174.46, indicating a favorable technical setup [3] Sales and Margin Growth - BOOT reported a 5.7% same-store sales growth and expanded merchandise margins by 110 basis points, driven by high single-digit growth in Western boots and mid-teens growth in denim [6][7] - Merchandise margin expansion was supported by buying scale benefits, supply chain efficiencies, and a 240 basis points growth in exclusive brands, with selective price increases planned for certain exclusive products [8] Omnichannel Strategy - The company's omnichannel strategy shows digital growth supported by strong in-store performance, with total same-store sales growing by 5.7%, including a 19.6% increase in e-commerce same-store sales and a 3.7% increase in retail store sales [9] Store Expansion - Boot Barn ended the fiscal third quarter with 514 stores, including 25 new openings, and aims for a long-term target of 1,200 locations nationwide, with new stores expected to generate approximately $3.2 million in annual sales in their first full year [11] Updated Guidance - The company raised its full-year sales outlook to between $2.24 billion and $2.25 billion, reflecting growth of 17% to 18% compared to fiscal 2025, and lifted merchandise margin guidance to approximately 50.8% of sales [14] - Consolidated same-store sales growth is now forecasted between 6.5% and 7%, with retail same-store sales expected to be in the range of 5.5%-6% and e-commerce same-store sales projected at 14.5%-15% [15] Earnings Estimates - The Zacks Consensus Estimate for BOOT's current and next financial year earnings per share has improved by 13 cents and 23 cents, respectively, in the past 30 days [17] Investment Perspective - Boot Barn's premium valuation is supported by broad-based category strength, disciplined margin expansion, and an accelerating omnichannel execution, suggesting that the current valuation reflects quality [18]

Core Insights - Investors should not rely solely on stock price movements without understanding a company's fundamentals, as this can lead to financial losses. A thorough review of a company's financial health is essential, particularly in an unpredictable market [1] Interest Coverage Ratio - The interest coverage ratio is a critical metric that indicates how effectively a company can pay interest charges on its debt [3][4] - This ratio is calculated by dividing Earnings before Interest & Taxes (EBIT) by Interest Expense, providing insight into a company's ability to meet its interest obligations [4] - A ratio lower than 1 indicates potential default risk, while a higher ratio suggests a company can withstand financial difficulties [6] Investment Strategy - Companies with an interest coverage ratio above the industry average, a favorable Zacks Rank, and a VGM Score of A or B are likely to yield better investment results [7] - Additional criteria for screening include a minimum stock price of $5, strong historical and projected EPS growth compared to the industry median, and an average trading volume greater than 100,000 [8][9] Company Performance Highlights - Boot Barn Holdings, Inc. (BOOT) has a Zacks Rank of 1, a VGM Score of B, and is projected to have a 17.6% sales growth and 26% EPS growth this fiscal year, with a stock price increase of 36.2% over the past year [10][11] - Brinker International, Inc. (EAT) also holds a Zacks Rank of 1 and a VGM Score of A, with expected sales growth of 7.9% and EPS growth of 19.8%, although its stock has declined by 3.6% in the past year [11][12] - Tapestry, Inc. (TPR) has a Zacks Rank of 1 and a VGM Score of B, with projected sales growth of 9.6% and EPS growth of 23.7%, and a significant stock increase of 72.8% over the past year [12][13] - Cardinal Health, Inc. (CAH) carries a Zacks Rank of 2 and a VGM Score of A, with anticipated sales growth of 16.5% and EPS growth of 25.1%, and a stock surge of 74.8% in the past year [13][14]

Core Insights - Boot Barn Holdings, Inc. (BOOT) has demonstrated strong online sales growth, with e-commerce same-store sales increasing by 19.6% year over year in Q3 fiscal 2026, significantly surpassing retail same-store growth of 3.7% and total company same-store growth of 5.7% [1][8] - The company's strategy of launching stand-alone websites for exclusive brands has been a key driver of this momentum, enhancing digital visibility and attracting first-time customers [2][3] E-commerce Strategy - The introduction of dedicated websites for brands like Cody James and Hawx has yielded strong initial results, reinforcing the effectiveness of marketing proprietary brands independently from the core Boot Barn platform [2] - Boot Barn plans to launch additional stand-alone sites, including Shyanne and CLEO & WOLF, to further enhance brand identities and customer engagement [3] Omnichannel Growth Model - The company's omnichannel strategy supports a virtuous loop where digital platforms enhance brand awareness and drive traffic to physical stores, leading to a raised full-year e-commerce growth outlook of 15%, up from a previous range of 11% to 13% [4] - By leveraging a low-cost digital infrastructure, Boot Barn is building a scalable and efficient omnichannel growth model [4] Stock Performance and Valuation - BOOT's shares have increased by 6.5% year to date, outperforming the industry's rise of 4.2%, and the company holds a Zacks Rank of 1 (Strong Buy) [5] - The forward price-to-earnings ratio for BOOT is 22.45, which is higher than the industry average of 18.42 [6] Earnings Estimates - The Zacks Consensus Estimate indicates a year-over-year earnings growth of 26% for the current fiscal year and 16.1% for the next fiscal year [10] - Current estimates for BOOT's earnings per share (EPS) are 7.33 for the current year and 8.52 for the next year, reflecting a growth estimate of 25.95% and 16.12% respectively [11]

Company Overview - Boot Barn Holdings operates over 500 stores across 49 states, specializing in western and workwear apparel, and utilizes multiple e-commerce platforms to reach a diverse customer base [6][9] - The company reported a market capitalization of $5.72 billion, with a revenue of $2.17 billion and a net income of $218.98 million for the trailing twelve months [4] Recent Financial Performance - Boot Barn achieved a quarterly revenue growth of 16%, reaching $705.6 million, with same-store sales increasing by 5.7% and e-commerce comparable sales surging by 19.6% [10] - The net income for the quarter rose to $85.8 million, translating to $2.79 per diluted share, with guidance projecting full-year sales of up to $2.25 billion and diluted EPS as high as $7.35 [10] Investment Activity - Ranger Investment Management disclosed a sale of 99,800 shares of Boot Barn Holdings, valued at approximately $18.62 million, reducing its position in the company [2][8] - Post-transaction, Boot Barn Holdings represented 1.02% of Ranger's 13F assets under management, with the fund's quarter-end position value decreasing by $15.63 million [2][8] Market Performance - As of February 12, 2026, Boot Barn shares were priced at $186.00, reflecting a 41.1% increase over the past year, outperforming the S&P 500 by 28.16 percentage points [8][12] - The company maintains a strong cash position of approximately $200 million, with plans to open 70 new stores in the fiscal year while continuing share repurchases [11] Strategic Positioning - Boot Barn's differentiated product assortment and omni-channel strategy provide a competitive edge in the fragmented apparel retail market, targeting consumers seeking durable lifestyle-focused merchandise [6][9] - The company is positioned for growth, with a focus on unit economics and exclusive brand penetration, suggesting that its current store count may be a midpoint rather than a ceiling [12]

Core Insights - Boot Barn Holdings, Inc. (BOOT) is experiencing strong performance from its new store openings, consistently exceeding sales and earnings expectations across all U.S. regions [1][8] - The company aims to expand its store count to 1,200 locations nationwide, having ended the fiscal third quarter with 514 stores, including a record 25 openings during the quarter [1][8] Expansion Strategy - The new store openings are projected to generate approximately $3.2 million in annual sales during their first full year, with an expected payback period of under two years [2][8] - Boot Barn plans to open 15 additional stores in the fiscal fourth quarter, bringing the total for fiscal 2026 to 70 new stores, with a targeted annual growth rate of 12% to 15% for fiscal 2027 [4][8] Market Growth - Growth in non-legacy markets such as Florida, Jersey City, and the Northeast has been particularly promising, with sales and customer profiles resembling those in legacy markets like California, Arizona, and Texas [3] Financial Performance - Boot Barn's shares have increased by 5.4% year to date, outperforming the industry average of 3.9%, and the company holds a Zacks Rank of 1 (Strong Buy) [5] - The forward price-to-earnings ratio for BOOT is 22.17, which is higher than the industry average of 18.38 [6] Earnings Estimates - The Zacks Consensus Estimate for BOOT's earnings indicates a year-over-year growth of 26% for the current fiscal year and 16.1% for the next fiscal year [14]

Core Insights - Boot Barn Holdings, Inc. (BOOT) reported a strong performance in Q3 of fiscal 2026, with revenue increasing by 16% year over year to $706 million and same-store sales rising by 5.7% [1][9] Financial Performance - Quarterly revenue reached $706 million, marking a 16% increase year over year, with consolidated same-store sales up 5.7% [1][9] - Retail store same-store sales increased by 3.7%, while e-commerce same-store sales surged by 19.6% [1][9] - For the first five weeks of Q4, same-store sales rose by 5.7%, with an even higher rate of approximately 9.1% before weather disruptions [4][9] Category Performance - All major product categories showed robust growth, with men's and women's Western boots achieving high single-digit comparable sales growth [3] - Apparel outperformed the chain average, particularly denim, which saw mid-teens same-store sales growth [3] - Work boots also experienced mid-single-digit comparable sales growth, indicating sustained consumer demand across footwear and apparel [3] Digital and E-commerce Growth - The digital segment benefited from newly launched standalone websites for exclusive brands, attracting new customers [2] - Management plans to launch dedicated websites for additional brands, further enhancing digital presence [2] Market Position and Outlook - Boot Barn's sales growth, expanding margins, and strong digital traction support confidence in its long-term growth strategy and store expansion targets [5] - BOOT's shares have increased by 10% year to date, outperforming the industry average of 3.7% [8] - The Zacks Consensus Estimate indicates a year-over-year earnings growth of 26% for the current fiscal year and 16.1% for the next [12]

Core Viewpoint - Investors are increasingly seeking growth stocks that demonstrate above-average growth potential, with Boot Barn identified as a strong candidate due to its favorable growth metrics and Zacks Rank [2][10]. Group 1: Earnings Growth - Boot Barn has a historical EPS growth rate of 12.5%, but projected EPS growth for this year is significantly higher at 26.4%, surpassing the industry average of 15.4% [5]. Group 2: Cash Flow Growth - The year-over-year cash flow growth for Boot Barn stands at 20.7%, which is notably higher than the industry average of -2.2% [6]. - Over the past 3-5 years, Boot Barn's annualized cash flow growth rate has been 19.5%, compared to the industry average of 7.6% [7]. Group 3: Earnings Estimate Revisions - There has been a positive trend in earnings estimate revisions for Boot Barn, with the Zacks Consensus Estimate for the current year increasing by 3.7% over the past month [8]. Group 4: Overall Assessment - Boot Barn has achieved a Growth Score of A and holds a Zacks Rank 1, indicating it is a potential outperformer and a solid choice for growth investors [10].

Core Insights - Boot Barn Holdings, Inc. (BOOT) reported strong third-quarter results for 2026, with both revenue and earnings meeting expectations and showing year-over-year growth, leading management to raise its fiscal 2026 guidance [1][9] Quarterly Performance - BOOT's earnings per share (EPS) for the quarter was $2.79, an increase from $2.43 in the same period last year, which had included a 22-cent benefit from the former CEO's resignation [2] - Net sales reached $705.6 million, reflecting a 16% year-over-year increase, driven by new store openings and same-store sales growth [2] Same-Store Sales and Expansion - Consolidated same-store sales grew by 5.7% year over year, with retail same-store sales increasing by 3.7% and e-commerce same-store sales rising significantly by 19.6% [3] - The company opened 25 new stores during the quarter, bringing the total to 514 stores [3] Margin and Cost Performance - Gross profit increased by 17.7% year over year to $281.2 million, with gross margin improving by 60 basis points to 39.9% [4] - Selling, General and Administrative (SG&A) expenses rose to $166.5 million from $139.4 million, primarily due to higher payroll and operational costs associated with more stores [5] - Income from operations was $114.8 million, up from $99.5 million, although operating margin contracted by 10 basis points to 16.3% [6] Financial Health - At the end of the quarter, BOOT had $200 million in cash and cash equivalents and total shareholders' equity of $1.28 billion [7] - The company repurchased 67,279 shares for $12.5 million during the quarter and anticipates capital expenditures of $125-$130 million, net of estimated landlord tenant allowances [7] Future Guidance - For the fourth quarter, BOOT plans to open 15 new stores and expects net sales between $525 million and $535 million, indicating year-over-year growth of 16% to 18% [8] - Consolidated same-store sales are projected to increase by 3% to 5%, with retail and e-commerce same-store sales expected to grow by 2.2%-4.2% and 11%-13%, respectively [8] Updated Fiscal 2026 Guidance - BOOT now anticipates fiscal 2026 net sales between $2.24 billion and $2.25 billion, representing a 17% to 18% year-over-year growth, an increase from the previous guidance of $2.20 billion to $2.23 billion [12] - Consolidated same-store sales growth is now forecasted between 6.5% and 7%, improved from the earlier estimate of 4%-6% [12] - Retail same-store sales are expected to be in the range of 5.5%-6%, while e-commerce same-store sales are projected to be 14.5%-15% [12] Earnings Projections - The company expects merchandise margin of $1.138 billion to $1.144 billion, representing about 50.8% of sales, with gross profit projected between $850 million and $855 million [13] - Income from operations is expected to be in the range of $297 million to $301 million, with projected earnings per share between $7.25 and $7.35, an improvement from $5.82 reported in fiscal 2025 [13]