Boot Barn shares climb after strong Q3 results, raised outlook
Western wear retailer beats earnings estimates and expands margins amid robust e-commerce growth
Boot Barn Holdings shares advanced after the Western wear retailer reported fiscal third-quarter earnings that exceeded analyst expectations and lifted its full-year outlook, signaling continued momentum in the specialty retail sector.
The Irvine, California-based company reported earnings per share of $2.79, narrowly topping the consensus estimate of $2.77, as gross margin expanded by 60 basis points to 39.9%. The margin improvement came alongside healthy comparable-store sales growth of 5.7%, demonstrating resilient consumer demand for Western and work-related apparel.
Perhaps most notably, Boot Barn's digital business showed particular strength with e-commerce sales surging 19.6%, indicating successful execution of its omnichannel strategy. The company also continued its physical expansion, opening 25 new stores during the quarter as it builds out its retail footprint across the United States.
Buoyed by the stronger-than-expected performance, management raised its fiscal 2026 guidance to earnings per share of $7.25 to $7.35, with projected sales growth of 17% to 18%. The raised outlook suggests confidence that Boot Barn can sustain its growth trajectory despite broader economic uncertainty facing consumer discretionary retailers.
The company returned capital to shareholders through repurchases under its $200 million buyback program, a move that likely pleased investors amid concerns about valuations in the retail sector. The buybacks come as Boot Barn trades with a market capitalization of approximately $5.6 billion and a forward price-to-earnings ratio of 21.79.
Analyst sentiment remains broadly positive on the stock, with 13 analysts rating it a buy or strong buy compared to three hold ratings, according to market data. The consensus target price of $231.86 suggests significant upside potential from current levels, though shares have already recovered substantially from their 52-week low of $86.17.
Boot Barn's performance contrasts with some broader retail sector weakness, as many apparel and specialty retailers face pressure from cautious consumer spending and promotional environments. The company's focus on Western wear and work apparel—categories that have shown relative resilience—has helped it navigate challenging market conditions more effectively than peers in more fashion-driven segments.
The gross margin expansion of 60 basis points represents a notable achievement in a retail environment where many companies have struggled with rising input costs and the need to discount inventory to clear merchandise. The margin improvement suggests Boot Barn has successfully managed its pricing power and inventory levels despite broader industry challenges.
Looking ahead, investors will be watching whether Boot Barn can maintain its strong e-commerce growth rates and continue delivering comparable-store sales gains in the coming quarters. The raised guidance sets a high bar, and any signs of consumer spending softening could test the company's ability to meet its elevated targets.
The company shares currently trade above both their 50-day and 200-day moving averages, a technical indication that momentum remains favorable despite recent market volatility. However, with the stock already up more than 112% from its 52-week low, some investors may question how much additional upside remains priced into the shares at current valuation levels.