Boot Barn CEO Says Revenue Increase Due To Return To Concerts, Rodeos ‘Still Ahead’

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Jim Conroy, president and CEO of Boot Barn, told CNBC on Tuesday that the Western lifestyle retailer has yet to take full advantage of the reopening of the US economy due to disruptions in the pandemic era.

In an interview on “Power Lunch,” Conroy said the return of concerts and rodeos, as well as county and state fairs, is sure to boost Boot Barn sales in the coming months. However, the executive said this is not the only reason for recent strong results.

“On our most recent earnings call, we mentioned a growth from over two years ago, a 60% increase in total sales, and that’s really before all the country music artists start touring again and the events and rodeos start popping up,” he said. Conroy. . “All that tailwind, to be honest, is still ahead of us.”

Shares of California-based Boot Barn have been in trouble so far this year, rising more than 86%. By comparison, the small-cap Russell 2000 Index – which includes Boot Barn – is up 16.3% so far.

Boot Barn shares are up 259% in the past 12 months, compared to the Russell 2000’s gain of 60%.

Citigroup upgraded the stock from neutral to buy last week, citing the rise in oil prices – and the positive economic benefits in regions where Boot Barn has exposure – as one of the reasons why the stock could rise further.

Citi analyst Steven Zaccone set a price target of $92 on the stock. It closed Tuesday’s session up 4.4% to $81.16, while setting an all-time intraday 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 ran Boot Barn for nearly a decade, said the retailer has seen its sales mix evolve in recent months as the Covid pandemic has progressed.

“Over the past few quarters, we’ve gone from extremely functional sales to much more of a combination of functional and discretionary, so we’ve seen a nice revival in men’s and women’s denim, men’s and women’s western boots, sort of aligning with the growth that we’ve seen in the past year, plus in work boots and work clothes.”

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