Boot Barn President and CEO Jim Conroy informed CNBC on Tuesday that the Western-way of life seller has yet to experience the complete advantages of the U.S. economy resuming from pandemic-era interruptions.
In an interview on “Power Lunch,” Conroy stated the return of shows and rodeos, in addition to county and state fairs, will definitely raise Boot Barn’s sales in the coming months. However, the executive stated it’s not the sole factor for current strong outcomes.
“On our most recent earnings call, we called out growth over two years ago up 60% in total sales, and that’s really prior to all the country music artists starting to tour again, and the events and rodeos beginning to emerge,” Conroy stated. “All of that tailwind, to be honest, is still in front of us.”
Shares of California-based Boot Barn have actually been on a tear up until now this year, skyrocketing more than 86%. For contrast, the little cap Russell 2000 Index — in which Boot Barn belongs — has actually advanced 16.3% year to date.
Boot Barn shares are up 259% in the past 12 months, compared to the Russell 2000’s gain of 60%.
Citigroup updated the stock to purchase from neutral recently, indicating the increase in oil costs — and its favorable financial advantages in areas where Boot Barn has direct exposure — as one factor the stock might see more advantage.
Citi expert Steven Zaccone put a $92 rate target on the stock. It closed Tuesday’s session up 4.4% to $81.16, while setting an intraday all-time high going back to its IPO in 2014.
Of the 10 expert rankings offered on FactSet, 6 have a buy on Boot Barn and 4 have a hold.
Conroy, who has actually led Boot Barn for almost a years, stated the seller has actually seen its sales mix progress in current months, as the Covid pandemic advanced.
“Over the last few quarters, we’ve gone from extremely functional selling to much more a combination of functional and discretionary, so we’ve seen a nice uptick in men’s and ladies’ denim, men’s and ladies’ Western boots kind of joining the growth we’ve seen for the last year-plus in work boots and work apparel.”
