On Tuesday, Jefferies maintained a positive stance on Boot Barn (NYSE: NYSE:BOOT), reiterating a Buy rating and a $170.00 price target. The firm's analysts expressed confidence in the company's performance despite the announcement that CEO Jim Conroy will transition to a new role as CEO of Ross Stores. Boot Barn has continued to deliver strong results, with second-quarter same-store sales (SSS) surpassing the preannounced expectations, largely due to robust performance in September.
The company's positive trajectory did not halt in October, as the management team has raised its guidance for fiscal year 2025. The analysts at Jefferies highlighted that the ongoing strong SSS trends and the upward revision of the fiscal outlook are promising signs for Boot Barn's positioning in the second half of fiscal year 2025.
The leadership change at Boot Barn comes at a time when the company is experiencing solid growth. The outgoing CEO, Jim Conroy, has been credited with steering the company to its current strong position. As he prepares to take on the CEO role at Ross Stores, the firm's analysts believe that the foundations for continued success at Boot Barn remain firm.
In light of these developments, Jefferies has chosen to maintain its Buy rating and price target for Boot Barn. The firm's stance reflects a belief in the company's robust performance and potential for continued success, even as it undergoes a transition in its top leadership.
In other recent news, Boot Barn Holdings Inc reported second-quarter earnings that fell short of analyst expectations, triggering a significant drop in its shares. The western wear retailer reported adjusted earnings per share of $0.95, missing the projected $0.96. However, the company's revenue was $425.8 million, slightly exceeding the consensus estimate of $424.5 million and marking a 13.7% increase year over year. Same-store sales also saw an increase, with a 4.9% rise compared to the previous year.
In addition to the earnings report, the company announced the departure of CEO Jim Conroy, who will be stepping down to assume the CEO role at Ross Stores Inc (NASDAQ:ROST). In the interim, John Hazen, the current Chief Digital Officer, will take over as CEO.
As part of these recent developments, Boot Barn provided an outlook for fiscal 2025, expecting revenue to range between $1.874 billion and $1.907 billion. This forecast aligns closely with analyst estimates of $1.87 billion, indicating a potential growth of 12.4% to 14.4% over the prior year.
InvestingPro Insights
Boot Barn's strong performance, as highlighted in the article, is further supported by recent data from InvestingPro. The company's market capitalization stands at $4.92 billion, reflecting investor confidence in its growth potential. Boot Barn's revenue for the last twelve months reached $1.71 billion, with a quarterly revenue growth of 10.34% in Q1 2025, aligning with the article's mention of strong same-store sales performance.
InvestingPro Tips reveal that Boot Barn has seen a high return over the last year, with a remarkable 132.1% price total return. This impressive performance is consistent with the company's raised guidance for fiscal year 2025 mentioned in the article. Additionally, analysts have revised their earnings upwards for the upcoming period, suggesting continued optimism about Boot Barn's financial outlook.
It's worth noting that Boot Barn is trading at a high earnings multiple, with a P/E ratio of 32.17. This valuation may reflect investors' expectations for future growth, in line with the company's strong recent performance and positive guidance.
For readers interested in a deeper dive into Boot Barn's financials and market position, InvestingPro offers 15 additional tips, providing a comprehensive analysis to inform investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.