Why Boot Barn Stock Popped After Earnings

Boot Barn (NYSE: BOOT) stock was trading up by 17.5% as of 10:37 a.m. ET Thursday, and it's pretty clear what powered that surge.

In the fiscal 2025 fourth-quarter earnings report that it delivered on Wednesday evening, the retailer said it earned $1.22 per share on sales of $453.7 million. That came up short of Wall Street's forecasts for $1.25 per share in earnings and $458.4 million in sales, yet the news wasn't all bad. Boot Barn's revenues still grew nearly 17% year over year. Same-store sales rose by 6%; an expanded store count helped make up the rest of the growth. Its earnings growth of 27% was even better.

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For the full fiscal year, which ended March 29, sales grew by nearly 15%, same-store sales rose 5.5%, and net profits were up by 23% to $5.88 per share.

Is Boot Barn stock a buy?

CEO John Hazen hailed the results as "a solid finish to fiscal year 2025." Looking ahead, he reassured investors that "we remain confident in our ability to navigate the current tariff environment through our diversified sourcing capabilities and established vendor partnerships." Then he put his money where his mouth is, announcing a $200 million stock buyback authorization.

Boot Barn plans to open 65 to 70 new stores in its fiscal 2026, which it expects will help it to grow sales by 8% to 13%, to a total of more than $2.1 billion (despite flattish same-store sales), and earn anywhere from $5.50 per share to $6.40 per share. Those numbers looked generally weaker than Wall Street forecasts; based on them, the stock on Thursday morning was trading as high as 28 times this fiscal year's expected earnings.

Given that the retailer's sales and earnings are starting to plateau, though, it may be time to consider selling the stock after one last hurrah on Thursday.

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Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Boot Barn. The Motley Fool has a disclosure policy.