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Why Shares of Boot Barn Holdings Were Up Today

By Travis Hoium – Updated Aug 1, 2019 at 5:32PM

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The boot business is on fire.

What happened 

Shares of retailer Boot Barn Holdings (BOOT 3.16%) jumped as much as 26.5% in early trading Thursday after the company reported fiscal first-quarter results. But the stock didn't hold those gains and was up only 4.7% at the close of trading. 

So what

Sales for the quarter jumped 14.7% to $185.8 million on an 11.1% increase in same-store sales. Net income jumped 43.8% to $9.7 million, or $0.33 per share. Analysts only expected revenue of $180 million and earnings of $0.22 per share, so this was a wide earnings beat. 

Boots on a store shelf.

Image source: Getty Images.

What really got investors excited was the outlook for the rest of the year. Guidance for full-year comps growth was increased to 6% from 5%, and the earnings guidance range was increased $0.15 to between $1.57 and $1.65 per share. 

Now what

Demand for Boot Barn's products is clearly booming, and management is capitalizing by adding an expected 25 stores this year. Interestingly, the retail stores -- not online sales -- are driving growth. I guess when people buy boots, they want to try them on first, which is helping this be one of the rare growth retail concepts on the market today.  

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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Boot Barn Holdings, Inc. Stock Quote
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