Group 1: Pilgrim's Pride (PPC) - The company is engaged in the processing, production, marketing, and distribution of frozen, fresh, and value-added chicken products [1] - It carries a Zacks Rank 1 (Strong Buy) and has seen a 2% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - The PEG ratio is 0.19, significantly lower than the industry average of 0.58, and it possesses a Growth Score of A [2] Group 2: Brinker International (EAT) - The company owns, operates, develops, and franchises various restaurants under the Chili's Grill & Bar and Maggiano's Little Italy brands [2] - It also carries a Zacks Rank 1 and has experienced a 45.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - The PEG ratio is 0.63 compared to the industry average of 4.12, and it has a Growth Score of A [3] Group 3: Boot Barn (BOOT) - The company operates as a lifestyle retail chain focused on western and work-related footwear, apparel, and accessories [3] - It holds a Zacks Rank 1 and has seen a 7.5% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [3] - The PEG ratio is 1.26, which is better than the industry average of 1.50, and it also possesses a Growth Score of A [4]

Core Viewpoint - The article highlights three stocks with strong growth characteristics and buy ranks for investors to consider, emphasizing their recent earnings estimates and growth metrics. Group 1: Boot Barn (BOOT) - Boot Barn operates as a lifestyle retail chain focused on western and work-related footwear, apparel, and accessories [1] - The company has a Zacks Rank of 1 (Strong Buy) and has seen a 7.5% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [1] - Boot Barn has a PEG ratio of 1.27, which is lower than the industry average of 1.49, and possesses a Growth Score of A [2] Group 2: Brinker International (EAT) - Brinker International owns, operates, develops, and franchises various restaurants [2] - The company also carries a Zacks Rank of 1 and has experienced a significant 45.7% increase in the Zacks Consensus Estimate for its current year earnings over the last 60 days [2] - Brinker International has a PEG ratio of 0.64, significantly lower than the industry average of 4.07, and holds a Growth Score of A [2] Group 3: KT (KT) - KT provides telecommunication services and holds a Zacks Rank of 1 [3] - The company has seen a 3.5% increase in the Zacks Consensus Estimate for its next year earnings over the last 60 days [3] - KT has a PEG ratio of 0.35, which is lower than the industry average of 1.06, and possesses a Growth Score of B [3]

Company Overview - Boot Barn (NYSE: BOOT) is experiencing rapid expansion with excellent performance in new store openings and plans to continue this growth trajectory [1]. Sales Performance - The company is achieving significant same-store sales growth, indicating strong consumer demand and effective business strategies [1].

Group 1 - Boot Barn Holdings, Inc. reported strong results for fiscal Q3 2025, with same-store sales increasing by 8.6% [1] - The company is expected to face "easier" comparisons in future quarters, which may positively impact sales performance [1] Group 2 - The analysis emphasizes a long-term investment perspective, focusing on operational aspects and the long-term earnings potential of companies [1] - The investment strategy involves holding companies regardless of short-term price movements, with a preference for a small fraction of companies being classified as a buy [1]

Core Viewpoint - Boot Barn's stock experienced a decline despite a strong Q3 financial report, which included significant year-over-year growth in net sales and net income [1][2][3]. Financial Performance - Boot Barn reported Q3 net sales of $608 million, reflecting a nearly 17% increase year-over-year, driven by a 9% growth in same-store sales [2][3]. - The company's net income for Q3 reached $75 million, marking a 35% increase, significantly outpacing net sales growth [3]. Business Growth and Strategy - Sales from exclusive brands are projected to account for nearly 39% of total full-year sales, indicating a shift towards higher-margin products [2][3]. - Boot Barn anticipates 15% annual growth for fiscal 2025, supported by an aggressive new store opening strategy, with plans to increase locations from about 450 to 900 by fiscal 2030 [4][5]. Valuation and Investment Perspective - The stock trades at approximately 30 times its earnings, which may appear high for an apparel retailer, but is justified by the company's growth trajectory [4]. - The recent stock pullback is viewed as a potential buying opportunity for long-term investors, assuming current trends continue [5].

Core Insights - Boot Barn Holdings, Inc. reported strong third-quarter fiscal 2025 results, with revenues meeting estimates and earnings exceeding expectations, showing year-over-year growth [1][2] Financial Performance - Earnings per share (EPS) reached $2.43, a 34.3% increase from $1.81 in the same quarter last year, surpassing the Zacks Consensus Estimate of $2.38 [3] - Net sales amounted to $608.2 million, reflecting a 16.9% year-over-year increase, driven by new store openings and higher same-store sales [3] - Consolidated same-store sales rose by 8.6%, with retail store sales increasing by 8.2% and e-commerce sales by 11.1% [4] Margin and Cost Analysis - Gross profit increased by 20% to $238.9 million, primarily due to higher sales and improved merchandise margins [5] - Gross margin improved by 100 basis points to 39.3%, aided by a 130-basis point increase in merchandise margin, despite a 30-basis point rise in occupancy and distribution costs [6] - Selling, general and administrative (SG&A) expenses were $139.4 million, up 12.5% year over year, but as a percentage of net sales, they declined by 90 basis points to 22.9% [7][8] Future Outlook - For the fiscal fourth quarter, Boot Barn anticipates net sales between $451 million and $460 million, indicating growth of 16.1% to 18.4% year-over-year [11] - The company expects same-store sales to increase by 5.3% to 7.8%, with retail store same-store sales projected to rise by 4.7% to 7.2% and e-commerce sales by 9.6% to 12.1% [11] - For fiscal 2025, Boot Barn plans to open 60 new stores and forecasts total revenues of $1.91 billion to $1.92 billion, up from a previous estimate of $1.87 billion to $1.91 billion [13]

Financial Data and Key Metrics Changes - Revenue increased by 17% to $608 million, with consolidated same store sales growth of 8.6% [8][22] - Earnings per diluted share rose to $2.43, up from $1.81 in the prior year period, reflecting a $0.36 increase above guidance [10][24] - Gross profit increased by 20% to $239 million, with a gross profit rate of 39.3%, up 100 basis points from the prior year [22][23] Business Line Data and Key Metrics Changes - Same store sales in brick-and-mortar increased by 8.2%, while e-commerce sales grew by 11.1% [9][22] - Merchandise margin expanded by 130 basis points, driven by supply chain efficiencies and better buying economies of scale [9][20] - Exclusive brand penetration increased by 180 basis points, building on a prior year expansion of 310 basis points [20] Market Data and Key Metrics Changes - The company opened 13 new stores in the third quarter, bringing the total to 438 stores across 46 states [11] - The company plans to open 21 additional stores in the fourth quarter, aiming for a total of 60 new stores for the fiscal year [12][31] - Active customers in the loyalty program increased to 9.4 million, a 15% increase year-over-year [17] Company Strategy and Development Direction - The company aims to double its store count in the U.S. over the next several years, indicating strong market potential [12] - Focus on expanding omnichannel leadership, with e-commerce comp sales growing significantly [17] - Continued emphasis on merchandise margin expansion through supply chain efficiencies and exclusive brand growth [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current business tone, with January same store sales up 8.3% [21] - The company is optimistic about maintaining momentum in sales and margins, despite potential challenges in the work boots category [55] - Management noted that inventory levels are healthy, with no significant fashion risk identified [45] Other Important Information - The company raised its full-year guidance, expecting total sales to reach $1.92 billion, representing a 15% growth over the previous fiscal year [29][31] - The effective tax rate is estimated to be 25.4% for the fourth quarter [28] Q&A Session Summary Question: Traffic and demand trends in January - Management noted an acceleration in both men's and women's Western categories, with a strong start to the fourth quarter [35][36] Question: Merchandise margin drivers - Management expects merchandise margin to increase by 120 basis points in Q4, driven by supply chain efficiencies and exclusive brand penetration [39] Question: Inventory position and risks - Management confirmed a good inventory position with lower markdown inventory compared to previous years, indicating no fashion risk [45] Question: E-commerce performance - E-commerce growth is attributed to increased traffic and effective advertising strategies, with a focus on converting online customers to in-store visits [118][120] Question: Changes in product assortment - Management is satisfied with the current product assortment and is not planning significant changes, though minor adjustments may be made to appeal to a broader customer base [74][105]

Offering everyone a piece of the American spirit—one handshake at a time. Industry and Market Information Statements in this presentation concerning our industry and the markets in which we operate, including our general expectations and competitive position, business opportunity and market size, growth and share, are based on information from independent industry organizations and other third-party sources, data from our internal research and management estimates. Management estimates are derived from publ ...

Core Insights - Boot Barn reported revenue of $608.17 million for the quarter ended December 2024, marking a year-over-year increase of 16.9% and an EPS of $2.43 compared to $1.81 a year ago [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $608.22 million, resulting in a surprise of -0.01%, while the EPS exceeded expectations by 2.10% [1] Financial Performance - Boot Barn's shares have returned +14.2% over the past month, outperforming the Zacks S&P 500 composite's +1.2% change, with a Zacks Rank 1 (Strong Buy) indicating potential for further outperformance [3] - Same Store Sales growth was reported at 8.6%, slightly below the four-analyst average estimate of 8.7% [4] - The company opened or acquired 13 stores, matching the average estimate from two analysts [4] Operational Metrics - Average store square footage at the end of the period was 11,134, slightly above the estimated 11,084 [4] - The total number of stores operating at the end of the period was 438, consistent with the average estimate based on two analysts [4] - Total retail store square footage at the end of the period was 4.88 million, exceeding the estimated 4.86 million [4]

Core Insights - Boot Barn (BOOT) reported quarterly earnings of $2.43 per share, exceeding the Zacks Consensus Estimate of $2.38 per share, and up from $1.81 per share a year ago, representing an earnings surprise of 2.10% [1] - The company posted revenues of $608.17 million for the quarter ended December 2024, slightly missing the Zacks Consensus Estimate by 0.01%, but up from $520.4 million year-over-year [2] - Boot Barn has surpassed consensus EPS estimates in all four of the last quarters and has topped revenue estimates three times during the same period [2] Earnings Outlook - The sustainability of Boot Barn's stock price movement will largely depend on management's commentary during the earnings call and future earnings expectations [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.26 on revenues of $456.32 million, and for the current fiscal year, it is $5.84 on revenues of $1.91 billion [7] Industry Context - The Retail - Apparel and Shoes industry, to which Boot Barn belongs, is currently ranked in the top 24% of over 250 Zacks industries, indicating a favorable outlook for the sector [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Boot Barn's stock performance [5][6]