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Boot Barn stock holds Sector Weight from KeyBanc amid SSS concerns

EditorEmilio Ghigini
Published 2024-05-15, 09:48 a/m
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On Wednesday, Boot Barn (NYSE:BOOT) Holdings Inc. (NYSE: BOOT) stock maintained its Sector Weight rating as per the latest assessment by KeyBanc. The company reported a year-over-year sales decline of 8.7%, contrasting with a growth of 11.0% in the same quarter of the previous year.

Comparable store sales (SSS) also decreased by 5.9%, which nonetheless showed sequential improvement from the 9.7% dip observed in the third quarter of 2024.

The retailer observed stable SSS in the first six weeks of the first quarter to date and noted a sequential improvement across various channels, categories, and geographical regions.

However, Boot Barn expressed caution, attributing it to macroeconomic pressures and the challenge of comparing against a strong performance in June of the previous year, which saw a 1.5% increase in retail sales and a 3.5% decline in e-commerce.

In light of these factors, Boot Barn has projected its SSS for the first quarter of 2025 to range between a decrease of 4.5% to 2.5%. For the full fiscal year 2025, the company expects SSS to be down between 3.6% to 1.6%, while it anticipates long-term SSS to be in the low-single to mid-single digits.

KeyBanc acknowledged Boot Barn's consistent track record of store execution and its first-quarter progress in various categories. However, the firm suggests that near-term macroeconomic challenges could continue to impact SSS negatively. KeyBanc stated it would await signs of a positive inflection in the company's performance before adopting a more constructive stance on the stock.

InvestingPro Insights

Amid the cautious stance from KeyBanc, real-time data and analysis from InvestingPro provide a broader perspective on Boot Barn Holdings Inc. (NYSE: BOOT). With a market capitalization of $3.24 billion and a P/E ratio that stands at 19.3, the company shows a mix of stability and growth potential. The adjusted P/E ratio over the last twelve months as of Q3 2024 is slightly higher at 19.78, suggesting a stable valuation over time.

InvestingPro Tips highlight that analysts have revised their earnings upwards for the upcoming period, indicating potential confidence in the company's financial prospects. Additionally, despite the noted volatility in stock price movements, Boot Barn operates with a moderate level of debt and has liquid assets that exceed short-term obligations. These factors could provide some cushion against macroeconomic pressures.

Furthermore, the company has experienced a significant price uptick over the last six months, with a 41.56% total return, and is trading near its 52-week high. Analysts predict Boot Barn will be profitable this year, supported by a strong return over the last three months. For readers looking to delve deeper into Boot Barn's financial health and future prospects, InvestingPro offers additional insights and tips. There are 13 more InvestingPro Tips available for Boot Barn, which can be accessed for a deeper analysis. For those interested in a yearly or biyearly Pro and Pro+ subscription, use the coupon code PRONEWS24 to get an additional 10% off.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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