Business

Boot Barn CEO Expects To Surpass Current Store Target

Boot Barn CEO Jim Conroy told CNBC correspondent Jim Kramer on Friday that the western apparel retailer has raised its long-term target for store numbers, citing strong performance in recent years.

In an interview with Mad Money, Conroy said the Californian company’s old benchmark of 500 stores no longer fits.

“When we saw the performance of our new stores in completely new markets such as the Virginia, Ohio or Pennsylvania markets, not only are we excited about new stores in completely new markets, but we think we can – continue to expand our store numbers, but at the same time At the same time, we are adding stores in mature markets and we are not seeing much cannibalization, ”said Conroy, who has headed Boot Barn since 2012.

Add both of these factors together, and Conroy said Boot Barn expects it will “go beyond the 500 store caps we named when we went public” at the end of 2014. “We’ll name a more accurate number around this, but there will be a couple hundred stores north of this. [old target]… We just want to add some analytics to that, ”he said.

As of his latest income statementOn October 27, Boot Barn had 281 stores in 36 states.

Boot Barn’s shares have plummeted over the past 12 months, up roughly 177%, bringing the retailer’s market capitalization to $ 3.55 billion.

The increase in inventory came after the company showed strong sales growth. For the quarter ending September 25, Boot Barn reported sales of $ 312.7 million, up 67% from the same period two years before the Covid pandemic.

Conroy said one of the reasons Boot Barn was able to succeed is because it expanded its appeal to more customers. In the past, Boot Barn’s traditional customers were people who worked on the ranches, attended rodeos and “lived in a very large outdoor environment,” Conroy said.

More recently, Conroy said Boot Barn was working to attract “what we call the casual western or country shopper,” he said. According to him, this client may not wear a cowboy hat, but he may wear jeans and cowboy boots when attending a country music concert.

“This strategic step forward that we took was really an attempt to expand the targeted market that Boot Barn could go to,” Conroy said.

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