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Why Boot Barn Stock Deserves a Place in Your Portfolio?

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Key Takeaways

  • Boot Barn raised its TAM to about $58B, supporting long-term potential for 1,200 U.S. stores.
  • Boot Barn's exclusive brands reached 41.5% mix, driving 1,000-bp margin uplift versus third-party brands.
  • Boot Barn expects Q3 sales of $705.6M, up 16%, with comps rising 5.7% across channels.

Boot Barn Holdings, Inc.’s (BOOT - Free Report) shares have rallied 19.9% over the past year, outperforming the Zacks industry's decline of 4.8%. The company also outpaced the Retail-Wholesale sector’s growth of 9.1% and the S&P 500's rally of 18.3% during the same period.

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Closing at $192.69 in the last trading session, Boot Barn stock stands 8.4% below its 52-week high of $210.25 reached on Dec. 12, 2025. BOOT is trading above its 50 and 200-day simple moving averages of $189.77 and $166.03, respectively, indicating a favorable technical setup for the stock.

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BOOT Scales AI, E-Commerce and Store Expansion Strategy

Boot Barn has undergone a fundamental re-evaluation of its growth ceiling. The company’s Total Addressable Market (TAM) has been revised upward from $40 billion to approximately $58 billion, driven by broad-based growth across all major merchandise categories and geographies. This expanded TAM supports a new long-term domestic store count potential of 1,200 locations, more than double its current footprint. With a strategy to open 12% to 15% new units annually, the company has proven that its brand resonates nationally, moving beyond its traditional Western roots into a "stores-first" national retailer. By the end of fiscal 2026, Boot Barn expects to operate 529 stores across 49 states, leaving significant white space for future penetration.

Boot Barn is successfully driving margin expansion by increasing the mix of its high-margin Exclusive Brands (EB). Preliminary third-quarter fiscal 2026 results show EB penetration reached 41.5%, a 240-basis point increase over the prior year. These internal brands offer a merchandise margin enhancement of approximately 1,000 basis points compared to third-party brands. This shift has been a primary driver of the long-term upward trend in merchandise margins, which have expanded by an estimated 790 basis points over the last six years. For the third quarter of fiscal 2026, the company expects an additional 110 basis points of merchandise margin expansion.

The company’s digital strategy is effectively complementing its physical footprint, as evidenced by 19.6% e-commerce same-store sales growth in the most recent preliminary quarter. Boot Barn is leveraging technology to enhance the in-store experience and drive cross-channel efficiency through initiatives like "WHIP" (endless aisle), a dedicated mobile app, and "Cassidy," an AI-enabled in-store consumer solution. By maintaining consistent pricing across channels and avoiding frequent promotions, the company protects its brand equity and maximizes clearance margins. The omni-channel approach not only fulfills online demand through store and DC fulfillment but also drives physical traffic through services like Buy Online, Pick Up In-Store.

Boot Barn expects third-quarter net sales to reach $705.6 million, indicating an increase of 16% from the year-ago period. Growth reflects the same-store sales increase of 5.7%, highlighting balanced contributions from both physical and digital channels. Management expects earnings per share to be approximately $2.79, up from $2.43 in the third quarter of fiscal 2025. These results demonstrate the company's ability to leverage its omnichannel platform to capture broad consumer demand.

The Zacks Rundown for BOOT

From a valuation standpoint, BOOT trades at a forward 12-month price-to-earnings (P/E) ratio of 23.61, higher than the industry’s average of 16.12. However, it trades below its one-year median of 24.56.

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The Zacks Consensus Estimate for BOOT’s current year and next year earnings per share has improved by 22 cents and 23 cents, respectively, in the past 30 days.

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Image Source: Zacks Investment Research

How to Play BOOT Stock?

Boot Barn’s investments in AI, digital platforms, and brand-focused websites are strengthening both customer engagement and internal efficiency while supporting robust e-commerce growth. Early success in online sales, rising traction from exclusive brand sites, and improved product discovery highlight the effectiveness of these initiatives. Coupled with an expanded long-term store opportunity and a healthy new store opening pipeline, Boot Barn appears well-positioned to scale profitably, deepen brand equity and capture incremental growth across both digital and physical channels over the long term. At present, BOOT sports a Zacks Rank #1 (Strong Buy).

Other Stocks to Consider

Some other top-ranked stocks have been discussed below

Five Below, Inc. (FIVE - Free Report) operates as a specialty value retailer in the United States. At present, Five Below sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for FIVE’s current fiscal-year sales and earnings implies growth of 22.3% and 23.4%, respectively, from the year-ago figures. FIVE delivered a trailing four-quarter earnings surprise of 62.1%, on average.

Ulta Beauty, Inc. (ULTA - Free Report) operates as a specialty beauty retailer in the United States, Mexico, and Kuwait. At present, Ulta Beauty flaunts a Zacks Rank of 1.

The Zacks Consensus Estimate for ULTA’s current fiscal-year sales and earnings implies growth of 8.8% and 0.7%, respectively, from the year-ago figures. ULTA delivered a trailing four-quarter earnings surprise of 15.7%, on average.

Victoria’s Secret & Co. (VSCO - Free Report) operates as a specialty retailer of women's intimate apparel and other apparel and beauty products worldwide. At present, VSCO sports a Zacks Rank of 1.

The Zacks Consensus Estimate for Victoria's Secret’s current fiscal-year sales indicates growth of 4.7%, and the same for earnings indicate a decline of 1.5% from the year-ago figures. VSCO delivered a trailing four-quarter earnings surprise of 55.5%, on average.

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