Boot Barn: Broad-Based Sales Strength and Margin Expansion Underscore Accelerating Path to Mid-Teens EBIT and Support Buy Rating

Boot Barn, the Consumer Cyclical sector company, was revisited by a Wall Street analyst yesterday. Analyst Max Rakhlenko from TD Cowen reiterated a Buy rating on the stock and has a $225.00 price target.

Max Rakhlenko has given his Buy rating due to a combination of factors that highlight Boot Barn’s strong recent execution and favorable outlook. He points to the company’s third quarter same-store sales meaningfully exceeding guidance, with both physical stores and online channels contributing, and notes that growth was broad-based across regions and core product categories. In particular, he emphasizes the robust performance of western boots and apparel, as well as a notable recovery in work boots, supported by better inventory positioning and targeted merchandising actions. He also underscores management’s view that consumer demand trends remain stable, reinforcing confidence in the sustainability of current sales momentum.
Rakhlenko further cites the company’s significant EBIT margin outperformance, driven mainly by merchandise margin gains stemming from scale benefits, improved inventory and markdown management, supply-chain efficiencies, and the expanding mix of higher-margin exclusive brands. He believes these drivers support management’s ambition to reach mid-teens EBIT margins and suggests this margin target could be realized sooner than previously expected as the company grows and optimizes sourcing. Additionally, he views Boot Barn’s ongoing enhancements in e-commerce and marketing, as well as rising brand awareness and store expansion, as structural growth levers that can fuel both revenue and profit over the long term. Collectively, these operational strengths and margin tailwinds underpin his positive view and justify the Buy recommendation on the stock.

According to TipRanks, Rakhlenko is a 4-star analyst with an average return of 9.1% and a 61.62% success rate. Rakhlenko covers the Consumer Cyclical sector, focusing on stocks such as Planet Fitness, AutoZone, and Boot Barn.

In another report released yesterday, BTIG also maintained a Buy rating on the stock with a $235.00 price target.