Boot Barn’s 3Q Preliminary Results Surpass Street Estimates

Boot Barn Holdings reported preliminary third-quarter results (ending on Dec. 26, 2020), which exceeded analysts’ projections. The footwear and apparel retailer is scheduled to report its 3Q results in early-February. Shares closed 2.1% higher on Friday.

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Boot Barn (BOOT) said it expects 3Q adjusted EPS to increase 22.2% year-over-year to $0.99, surpassing analysts’ expectations of $0.87. The company said that higher sales and improved merchandise margins fueled 3Q earnings growth.

The retailer forecasted 3Q revenue to increase 6% year-over-year to $302.3 million, compared to the Street consensus of $297.2 million. Same-store sales growth is projected to expand 4.6% as e-commerce sales jumped 16.3%. (See BOOT stock analysis on TipRanks)

Following the preliminary results, Pivotal Research analyst Mitch Kummetz raised the stock’s price target to $48 (1.2% downside potential) from $33 but maintained a Hold rating. The analyst said, “Based on the strength of this preannouncement, we are revising our estimates not only for 3Q but also 4Q.”

Overall, consensus among analysts is a Moderate Buy with 3 analysts recommending a Buy and 6 suggesting a Hold. The average price target of $39.88 implies downside potential of about 17.9% to current levels. Shares were up about 2.8% over the past year.