Bull of the Day: Boot Barn (BOOT)
Boot Barn Holdings, Inc. (BOOT) proves that niche retail can still dominate. This Zacks Rank #1 (Strong Buy) saw same-store-sales rise 10% last fiscal year.
Boot Barn is a retailer focusing on western and work-related footwear, apparel and accessories for men, women and children. As of May 16, it operated 239 stores in 33 states and also sold online at www.bootbarn.com.
Additionally, the company operates www.sheplers.com, which is a pure play online western and work retailer and www.countryoutfitters.com, which sells to customers who live a country lifestyle.
Another Beat in Q4
On May 16, Boot Barn reported its fiscal fourth quarter earnings and beat on the Zacks Consensus by 5 cents. Earnings were $0.32 versus the consensus of $0.27.
It was the 7th earnings beat in a row.
In the quarter, same-store-sales rose 8.7% with retail store same-store-sales jumping 9.8% and e-commerce gaining 3.3% putting to pasture the argument that brick and mortar sales are dead.
It was the 8th consecutive quarter of positive same-store-sales growth.
“We completed another successful rodeo season in Texas, which along with solid results in each of our other geographies, allowed us to exceed expectations," said Jim Conroy, CEO.
For the full year, the same-store-sales jumped 10% with retail sales up 9.5% and e-commerce surging 12.2%.
Boot Barn added 17 new stores for the year, including 12 new stores and 5 that were acquired.
Guidance for Fiscal 2020
Boot Barn said it had momentum coming off the fourth quarter into the first quarter of the new fiscal year. At the halfway point of the first quarter, Boot Barn said that it saw consolidated same-store-sales growth of 7.5% along with solid merchandise margin performance.
It guided fiscal first quarter same-store-sales at 6%.
For the full year, it guided same-store-sales of 5%, which is coming on top of fiscal 2019's 10% gain. That's 15% growth over a 2-year period which is impressive in this retail environment.
Earnings are expected to be $1.42 to $1.50.
That is earnings growth of 11.8% as the company only earned $1.35 last year.
Analysts are bullish as well. The Zacks Consensus Estimate for fiscal 2020 is at $1.51, which is higher than the guidance range.
Shares at 2-Year Highs
Boot Barn has been one of the best retail stocks on the Street the last 2 years.
Shares have soared 379% during that time even with the November-December 2018 sell-off included in the equation.
Looking back, that was a huge buying opportunity as the shares are up 88% in 2019.
It's not cheap but it's not trading at the levels of other premier niche retailers like Lululemon (LULU) or Canada Goose (GOOS) either. Lululemon has a forward P/E of 40.5 and Canada Goose is trading at 35x but Boot Barn is trading at just 21.7x.
For those looking for a niche retailer that is growing its business in a very competitive environment, Boot Barn should be on your short list.
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