Boot Barn President and CEO Jim Conroy told CNBC on Tuesday that the Western-lifestyle retailer has yet to experience the full benefits of the U.S. economy reopening from pandemic-era disruptions.
In an interview on “Power Lunch,” Conroy said the return of concerts and rodeos, as well as county and state fairs, will surely lift Boot Barn’s sales in the coming months. However, the executive said it’s not the sole reason for recent strong results.
“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 said. “All of that tailwind, to be honest, is still in front of us.”
Shares of California-based Boot Barn have been on a tear so far this year, soaring more than 86%. For comparison, the small cap Russell 2000 Index — in which Boot Barn is a component — has advanced 16.3% year to date.
Boot Barn shares are up 259% in the past 12 months, compared with the Russell 2000’s gain of 60%.
Citigroup upgraded the stock to buy from neutral last week, pointing to the rise in oil prices — and its positive economic benefits in regions where Boot Barn has exposure — as one reason the stock could see further upside.
Citi analyst Steven Zaccone put a $92 price target on the stock. It closed Tuesday’s session up 4.4% to $81.16, while setting an intraday all-time high dating back to its IPO in 2014.
Of the 10 analyst ratings available on FactSet, six have a buy on Boot Barn and four have a hold.
Conroy, who has led Boot Barn for nearly a decade, said the retailer has seen its sales mix evolve in recent months, as the Covid pandemic progressed.
“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.”
