We came across a bullish thesis on Boot Barn Holdings, Inc. (BOOT) on Kroker Equity Research’s Substack. In this article, we will summarize the bulls’ thesis on BOOT. Boot Barn Holdings, Inc. (BOOT)’s share was trading at $151.14 as of 25th June. BOOT’s trailing and forward P/E were 25.70 and 24.70 respectively according to Yahoo Finance.
A farmer standing in a sun-drenched field wearing overalls and a rugged pair of western-style boots.
Boot Barn Holdings (BOOT), the largest U.S. retailer focused on western and workwear apparel, delivered a standout FY2025 performance, demonstrating both financial strength and operational agility. Revenues rose 14.6% to $1.91 billion, with same-store sales up 5.5% and e-commerce accelerating 9.7%.
Operating margins improved to 12.5%, and net income surged 23% to $180.9 million, reflecting disciplined SG&A and a favorable product mix led by high-margin exclusive brands. The company opened 60 new stores, increased inventory per location by 5.7%, and ended the year debt-light with $70 million in cash and no revolver draw. Despite an uncertain macro backdrop, Boot Barn maintained SG&A discipline, improved gross margins through merchandising gains, and drove average transaction sizes higher.
CEO John Hazen emphasized the brand’s strong consumer connection and the robustness of its omnichannel model. FY2026 guidance points to 65–70 new store openings and 8–13% top-line growth, though comparable sales are expected to be flat, reflecting macro caution. Even so, a $200 million buyback authorization—roughly 40% of the current market cap—signals management’s confidence in long-term free cash flow.
With nearly half of its long-term 900-store potential still ahead, Boot Barn remains a well-positioned growth story in a niche category insulated from broader fashion cycles. That said, a premium valuation (~28× P/E) bakes in flawless execution, leaving little room for missteps, especially given potential tariff headwinds and the discretionary nature of its merchandise.
Still, for investors comfortable with cyclical retail exposure, Boot Barn offers an attractive blend of margin expansion, brand equity, and scale-driven growth.
Previously, we covered a bullish thesis on Lululemon Athletica Inc. by Charts&Companies in June 2024, which highlighted the company’s pristine balance sheet, consistent 20%+ CAGR over 14 years, and undervaluation on both earnings and cash flow metrics. The company’s stock price has appreciated by approximately 2% since our coverage. It is too early to conclude whether the thesis has played out. Kroker Equity Research shares a similar view with BOOT but emphasizes Boot Barn’s niche dominance, operational agility, and brand-led margin expansion in the western and workwear segments.
