Boot Barn Holdings, Inc.BOOT continues to expand its store footprint, with new store openings continuing to exceed expectations, supporting its ongoing store expansion efforts. The company opened 27 new stores in the first quarter of fiscal 2027, bringing its footprint to 566 locations across 49 states. Management said that the pace of new-store openings has continued to outperform expectations, reinforcing the company’s plans to expand its retail presence.
The company expects a typical new store to generate about $3.2 million in annual revenue, with the investment expected to be recovered in less than two years. BOOT also remains on track to add 70 stores during fiscal 2027, with its existing pipeline supporting the planned expansion. The combination of new-store productivity and relatively short payback periods provides support for continued investment in the store base.
Store-level profitability also remains intact, with every location generating positive 4-wall EBITDA. Although the addition of new stores can place some pressure on occupancy rates, management noted that these locations are still contributing earnings to the bottom line. This indicates that the recently added stores are generating positive earnings while the company continues to expand its footprint.
Over the past 12 months, Boot Barn has added 93 stores, resulting in a 20% increase in its store count. Despite the strong pace of expansion, management continues to prioritize the quality of individual locations rather than opening stores that do not meet its standards. The company is targeting 12% to 15% store growth and remains encouraged by the pipeline for the remainder of the year. Overall, Boot Barn remains well positioned to expand its brand nationwide, with a long-term opportunity to build a network of 1,200 stores across the United States.
Zacks Rundown for BOOT
Boot Barn’s shares have gained 14.1% in the past three months compared with the industry’s growth of 16.2%. BOOT presently carries a Zacks Rank #2 (Buy).
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From a valuation standpoint, Boot Barn trades at a forward price-to-earnings ratio of 17.51, higher than the industry’s average of 15.28.
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The Zacks Consensus Estimate for BOOT’s current and next fiscal-year earnings implies year-over-year rallies of 22.6% and 10.5%, respectively.
Image Source: Zacks Investment Research
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