Boot Barn Named Top Consumer Pick by William Blair on Sales Rebound

William Blair has identified Boot Barn Holdings (NYSE: BOOT) as a leading pick in the consumer sector, according to a new analyst note. The investment firm's positive outlook follows a preannouncement from the western and work wear retailer that signaled improving sales trends and earnings on track to meet the upper end of its quarterly guidance.

Sales Trends Accelerate in Q2

Boot Barn's management preannounced that its fiscal second-quarter earnings per share (EPS) are expected to finish at the high end of its previously guided range of $1.55 to $1.65. The company also anticipates that same-store sales will remain within the guided range of flat to 2% growth for the quarter, which ended in September.

According to the company, sales trends saw a significant rebound in August and continued at that accelerated pace through the first three weeks of September. This marks a notable recovery from the flat comparable sales reported in July, a period the company said was disrupted by the World Cup. The improvement was described as broad-based across most major merchandise categories.

Analyst Sees Compelling Value

William Blair stated that the sustained sales improvement should help alleviate investor concerns that arose after the softer July performance. The firm views Boot Barn's current valuation as a key opportunity, noting that its shares trade at 14.5 times the firm's revised fiscal 2028 EPS estimate.

Ad

In its analysis, the firm called this valuation "overly cautious" and a "compelling discount" for a company with several fundamental strengths, including:

• A tangible store growth strategy
• Limited direct competition
• A product mix heavily focused on work items with low price elasticity

Context and Risks

While William Blair's outlook is bullish, the firm identified continued investor anxiety about a potential sales deceleration as the largest risk to the stock. However, it also noted that concerns regarding fashion risk are likely "overblown."

This update follows Boot Barn's first-quarter fiscal 2027 results, where it reported an adjusted EPS of $1.91 and revenue of $593.5 million, beating analyst estimates. The company also recently rebranded its business-to-business website to Boot Barn Workforce, a move previously noted by JPMorgan.