Boot Barn (BOOT Quick QuoteBOOT - Free Report) is a $700 million operator of a lifestyle retail chain devoted to western and work-related footwear, apparel and accessories. The company's products include boots, denim, western shirts, cowboy hats, belts and belt buckles, and western-style jewelry and accessories.

 

They also stock a line-up of rugged footwear, outerwear, overalls, denims, and shirts, as well as safety-toe boots, and flame-resistant and high-visibility clothing. BOOT sells its products through 234 stores in 31 states and their website Bootbarn.com.

 

On December 21, my colleague Ben Rains wrote about BOOT as a Zacks #1 Rank because analysts were busy raising growth estimates. He was scratching his head about the 44% slide in shares since their October 25 fiscal Q2 report and finding no reasons not to buy the stock...

 

"Last quarter, Boot Barn saw its revenues surged 17.5% to reach $168.1 million. Maybe more importantly, the company’s same-store sales jumped 11.3%. On top of growth in this vital retail metric, Boot Barn expanded its store count by three."

 

 

If we had listened to Ben, we would have been buying BOOT at $16 right before Christmas. Because on Feb 5 they delivered the goods once again. From the company press release...

 

Highlights for the quarter ended December 29, 2018, were as follows:

 

 

We didn't get earnings beats on the top or bottom lines, but the company raised full-year EPS guidance and analysts liked the growth trajectory and outlook so much -- especially those 9% SSS "comps" and the double-digit e-commerce growth -- that they in turn raised estimates for this fiscal year (ends March) and next year.

 

Boot Barn results gained from robust performances in all products, especially in work apparel, work boots, ladies and men's western apparel. Apart from this, solid marketing strategies, robust merchandising initiatives and strong store operations also contributed to the quarterly results.

 

Management raised its fiscal 2019 earnings guidance in the range of $1.31-$1.33, up from the prior view of $1.16-$1.24, representing an astounding 90% advance this year. This prompted analysts to raise FY2020 EPS from $1.47 to $1.51, representing 13.6% growth.

 

To visualize the growth trajectory, here's the Zacks proprietary Price & Consensus chart which plots changes in annual EPS estimates (from investment bank analysts) against the stock price, with green arrows representing the magnitude of earnings beats...

 

 

In addition to opening two new stores last quarter, company plans during the current fiscal year to open 18 new stores are more than halfway there with 11 openings in the nine months ending Dec 29, 2018.

 

In all, BOOT offers growth and value with a forward P/E under 17X and a price-to-sales ratio under 1.0 as 2019 will see revenues eclipse $800 million.

 

Investors may be worried about the growth outlook for some retail channels, but Boot Barn customers should have them kicking up their heels.

 

 

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.