Boot Barn: Resilient Margin Performance and Long Runway Support Buy Rating Despite Elevated Valuation

William Blair analyst Dylan Carden has maintained their bullish stance on BOOT stock, giving a Buy rating today.

Dylan Carden has given his Buy rating due to a combination of factors that highlight Boot Barn’s strong current performance and attractive long-term prospects. The company’s preliminary third-quarter results exceeded expectations on revenue, comparable sales, and operating income, demonstrating healthy demand across both online and in-store channels. Margin performance was particularly solid, with merchandise margin expansion driven by better purchasing scale, improved supply chain efficiencies, and growing private-label penetration, all of which supported an operating margin that slightly surpassed forecasts while remaining stable year-over-year.

Carden acknowledges that the stock’s valuation is now above its historical averages and that investor concerns around fashion risk and recent share price strength could trigger near-term profit taking. However, he views these concerns as overdone, noting that similar worries in prior periods did not materialize and were followed by renewed business acceleration. He believes Boot Barn’s ability to offset cost pressures, including tariffs, while preserving margins underscores the resilience of the model. Combined with a long runway for store expansion, clear business momentum, and a relatively limited competitive landscape, these dynamics support his view that the shares still offer compelling upside and justify a Buy rating, particularly on any pullbacks.

According to TipRanks, Carden is a 5-star analyst with an average return of 17.5% and a 62.79% success rate. Carden covers the Consumer Cyclical sector, focusing on stocks such as Ulta Beauty, National Vision Holdings, and thredUP.

In another report released today, Piper Sandler also maintained a Buy rating on the stock with a $220.00 price target.