In an interview with “Mad Money,” Conroy said the California-based company’s former 500-store benchmark was no longer adequate.
“As we’ve seen the performance of our new stores in whole new markets like Virginia, Ohio or Pennsylvania, not only are we even more encouraged by the performance of all new stores in whole new markets. and think we can keep increasing the number of our stores there, but at the same time we’ve added stores in mature markets and we’re not really seeing a lot of cannibalization, ”said Conroy, who runs Boot Barn since 2012.
Put those two factors together, and Conroy said Boot Barn thinks it will “surpass the maximum of 500 stores that we called when we went public” at the end of 2014. “We’re going to put a more specific number around that. , but there will be a few hundred stores north of that [old target]. We just want to add some analysis to it, ”he said.
In its last earnings report on October 27, Boot Barn had 281 stores in 36 states.
Boot Barn shares have fallen over the past 12 months, rising about 177% to bring the retailer’s market cap to $ 3.55 billion.
The stock surge comes as the company has demonstrated strong sales growth. For the quarter ended September 25, Boot Barn reported sales of $ 312.7 million, up 67% from the same period two years before the Covid pandemic.
Conroy said that one of the reasons Boot Barn has been able to be successful is to expand its appeal to more customers. In the past, Boot Barn’s traditional customers were people who worked on a ranch, attended rodeos, and “lived in a very outdoor environment,” Conroy said.
Most recently, Conroy said Boot Barn has made an effort to capture “what we call a casual Western or country customer,” he said. This client may not be wearing a cowboy hat, he said, but he may be wearing cowboy jeans and boots when attending a country music concert.
“This strategic step forward that we took was really an effort to broaden the addressable market that Boot Barn could target,” said Conroy.
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