BOOT - Boot Barn's Growth Is Impressive But The Stock Is Not An Opportunity
2024-04-17 04:59:58 ET
Summary
- Boot Barn is a Western apparel specialty retailer. The company has a large footprint of close to 400 stores and had a spectacular post-pandemic performance as store productivity almost doubled.
- It has quality characteristics like good historical margins, long-standing management, and international potential.
- However, the company trades at elevated multiples of current earnings. Further, these current earnings seem volatile in the short to mid term, given the tremendous increase in same-store sales.
- For that reason, I am interested in Boot Barn as a company but do not consider the stock to be an opportunity, and therefore rate it as a Hold.
Boot Barn ( BOOT ) is a Western apparel specialty retailer.
The company has a large footprint of close to 400 stores and had a spectacular post-pandemic performance as store productivity almost doubled. It has quality characteristics like good historical margins, long-standing management, and international potential.
However, the company trades at elevated multiples of current earnings. Further, these current earnings seem volatile in the short to mid term, given the tremendous increase in same-store sales during the post-pandemic period and how they are falling now....
Boot Barn's Growth Is Impressive, But The Stock Is Not An Opportunity