WCM Investment Cuts Boot Barn Stake 23% as Analysts Raise Price Target
WCM Investment Management LLC reduced its Boot Barn stake by 23%, selling 36,753 shares to hold 123,038 shares valued at $20.41 million at quarter-end. Meanwhile, Principal Financial Group boosted its position by 132.4% to 352,816 shares and analysts raised the consensus price target to $206.08.
1. Q3 Financial Performance Demonstrates Robust Top- and Bottom-Line Growth
Boot Barn reported net sales of $705.6 million for the quarter ended December 27, 2025, a 16.0 % increase over the prior-year period. Consolidated same-store sales rose 5.7 %, driven by a 19.6 % gain in e-commerce and a 3.7 % increase in retail store sales. Net income climbed to $85.8 million, or $2.79 per diluted share, up from $75.1 million, or $2.43 per diluted share, in the year-ago quarter. This performance met consensus EPS estimates and reflected strong holiday demand across footwear, apparel and accessories.
2. Margin Expansion and Controlled Expenses Fuel Profitability
Gross profit expanded to $281.2 million, representing a 39.9 % margin—a 60 basis-point improvement year-over-year—led by a 110 basis-point increase in merchandise margin. Supply-chain efficiencies, buying scale and higher exclusive-brand penetration offset 50 basis points of deleverage in occupancy and distribution costs. SG&A expenses totaled $166.5 million, or 23.6 % of net sales, a 70 basis-point deleverage driven by store payroll, marketing and corporate costs. Operating income of $114.8 million (16.3 % of sales) improved by $15.3 million versus the prior year.
3. Strategic Investments and 2026 Outlook Support Continued Expansion
During the quarter the company opened 25 new stores, bringing the total to 514. Average inventory per store increased 4.1 % on a same-store basis. Cash on hand stood at $200 million and share repurchases totaled $12.5 million under a $200 million program. For fiscal 2026, Boot Barn plans to open 70 net new locations, target total sales of $2.24–2.25 billion (17–18 % growth), and expects consolidated same-store sales growth of 6.5–7.0 %, with e-commerce up 14.5–15.0 % and retail stores up 5.5–6.0 %. Merchandise margin is forecast at roughly 50.8 % of sales, and gross profit near 38.0 %, supported by ongoing expense discipline.