Same-store sales growth is accelerating again.
Shares of Western apparel retail chain Boot Barn (BOOT 8.16%) surged to all-time highs on Tuesday morning after two prominent analysts raised their respective price targets for the stock. As of 9:45 a.m. ET, Boot Barn was up 13%.
What’s happening with Boot Barn?
Later on Tuesday, Boot Barn’s management will make a presentation at the Piper Sandler Growth Frontiers Conference. But in relation to this upcoming presentation, on Monday, management gave investors an update about same-store sales trends. In short, Boot Barn’s same-store sales slipped a little in July before rebounding in August, and growth is further accelerating in September.
Wall Street looked over those figures and two analysts were quick to raise their price targets for the stock. One was JPMorgan analyst Matthew Boss, who raised his price target by about 10% to $160 per share due to the trends in same-store sales, according to The Fly. This helped lift Boot Barn to an all-time high Tuesday morning.
Does Boot Barn have staying power?
Boot Barn provided preliminary numbers for its fiscal 2025 second quarter. For perspective, in its fiscal first quarter, same-store sales were only up a little more than 1% year over year. But the preliminary Q2 numbers showed a 4% gain.
Some investors had feared that the chain was a bit of a fad, and would eventually lose relevance. Boot Barn continues to buck that narrative, as evidenced by the preliminary Q2 numbers, and it is opening many new locations around the country. Its latest figures provide a good reason for investors to give this growth stock a good look.
JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool recommends Boot Barn. The Motley Fool has a disclosure policy.
