What happened

Shares of Boot Barn Holdings (BOOT -1.30%) tumbled last month after the western-themed retailer delivered a disappointing third-quarter earnings report. According to S&P Global Market Intelligence, the stock finished the month down 27%.

As you can see from the chart below, the stock sank early in the month after the report came out.

^SPX Chart

^SPX data by YCharts.

So what

Boot Barn stock fell 10% on Feb. 5 and continued to slide after the retailer posted a disappointing earnings result and offered weak guidance in the third-quarter earnings report. Same-store sales in the quarter rose 6.7%, the 11th straight quarter of positive growth in the category, showing that the model continues to generate traffic. Overall, revenue rose 11.8% to $284 million, which matched estimates. 

A pair of cowboy boots in a dark wood space

Image source: Getty Images.

Margins continued to expand within the business, and adjusted earnings per share increased from $0.66 to $0.81, though that missed estimates of $0.85. 

CEO Jim Conroy was pleased with the quarter, saying, "We continue to experience nice gains in the business due to effective marketing, compelling merchandise assortments, and great selling and service in the stores."

Boot Barn's fourth-quarter earnings guidance also missed the mark slightly. For the current quarter, the company expects comparable sales of 5% and earnings per share of $0.36-$0.38, which was below the consensus at $0.40. Even so, it raised its full-year earnings-per-share guidance from $1.67-$1.75 to $1.81-$1.83.

Now what

Boot Barn stock has also slipped on coronavirus concerns as the stock is down about 16.7% since the sell-off began two weeks ago as retail stocks have been hit hard by the news. Like other retailers, Boot Barn imports a significant percentage of its merchandise from China, so the company could be sensitive to any supply-chain disruptions. 

However, as a growing, niche brand, Boot Barn is in a much stronger position than a lot of brick-and-mortar retailers. The stock is now down more than a third from where it was before the earnings report came out. With a price-to-earnings ratio of just 15 and appealing growth prospects, Boot Barn is starting to look like a value play.