Solid FQ4 and Healthy Start to FQ1 Should Calm Concerns; Reiterate OW

Research evidence excerpt

Solid FQ4 and Healthy Start to FQ1 Should Calm Concerns; Reiterate OW

C O M PA N Y N O T E

M a y 1 4 , 2 0 2 6

Boot Barn Holdings, Inc. (BOOT) Overweight

CONCLUSION PRICE: US$146.36

We reiterate our OW rating and lower our PT slightly to $226 following a solid FQ4 print TARGET: US$226.00

and FY27 guidance. While BOOT shares are off -17% YTD and have been under pressure 24x FY28E EPS

as of late on concerns of recent sales weakness, FQ4 showed comp upside, and the first

6 weeks of FQ1 are running with a solid comp of +5%. BOOT's sales strength remains Peter J. Keith

Sr Research Analyst, Piper Sandler & Co.broad-based, and the company has not seen any weakness across its income cohorts from 212 284-5040, peter.keith@psc.com

higher gas prices. FQ1 and FY27 guidance looks appropriately conservative with the high-

Alexia Morgan

end of the EPS guide calling for +18% (vs. the last two years with an average of 24% EPS Research Analyst, Piper Sandler & Co.

growth). And BOOT has a variety of initiatives in place to drive solid comp growth and 212 284-9551, alexia.morgan@psc.com

product margin expansion. All in, we recommend buying shares on the recent pull-back. Sarah Morin

Research Analyst, Piper Sandler & Co.

• What Happened? BOOT reported a FQ4 beat with EPS of $1.45 (vs. cons $1.42) and 312 281-3446, sarah.morin@psc.com

comps of +6.1% (vs. cons +4.2%). Comp growth was driven by Retail comp of +5.2% and Changes Previous Current

E-comm comp of +14.1%. Gross margin of 36.3% (-80bps y/y) beat consensus of 36.1%; Rating — Overweight

gross margin contraction was driven by -50bps of deleverage in buying, occupancy and Price Tgt US$230.00 US$226.00

DC costs and -30bps in merchandise margin. SG&A was 25.7% of sales (-50bps y/y) FY27E Rev (mil) US$2,567.2 US$2,598.6