Boot Barn Holdings, Inc.’s BOOT exclusive brands continue to emerge as a major growth driver, supporting higher merchandise margins, stronger customer engagement and improving long-term profitability. For fiscal 2026, merchandise margin increased 80 basis points and exceeded initial expectations, supported by continued growth in exclusive brand penetration. Exclusive brands represented 40.8% of sales during the year, up 220 basis points year over year, while in the fourth quarter of fiscal 2026, brand penetration increased 90 basis points. Management also noted that exclusive brand penetration has expanded by 1,900 basis points over the past six years, underscoring the long-term success of the company’s brand strategy.
Additionally, the company continued to strengthen its exclusive brand strategy by refining merchandising and brand positioning efforts to establish its labels as standalone brands. These initiatives contributed to sales penetration growth. Over the past year, the company launched dedicated websites for Cody James, Hawx, Cheyenne and CLEO & WOLF, complementing its existing legacy brand platform. Management also highlighted strong brand storytelling, positive customer acquisition trends and ongoing marketing support through TikTok.
Boot Barn Holdings expects merchandise margin to reach 51.4% of sales in fiscal 2027, representing a 50 basis-point year-over-year increase. Management highlighted several drivers expected to support continued margin expansion, including higher exclusive brand penetration. The company also reiterated confidence in achieving its long-term objective of exclusive brands accounting for 50% of total sales.
Overall, Boot Barn’s growing exclusive brand portfolio continues to strengthen merchandise margins, enhance customer engagement and support long-term profitability through differentiated products and expanding digital brand presence.
The Zacks Rundown for BOOT
BOOT’s shares have lost 1.5% in the past year against the industry’s growth of 4.1%.
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From a valuation standpoint, BOOT trades at a forward price-to-earnings ratio of 17.68, higher than the industry’s average of 15.19. BOOT presently carries a Zacks Rank #3 (Hold).
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The Zacks Consensus Estimate for BOOT’s current and next fiscal year earnings implies a year-over-year rise of 16.5% and 15.9%, respectively.
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Stocks to Consider
Some better-ranked stocks have been discussed below:
Tapestry, Inc. TPR provides accessories and lifestyle brand products in North America, Greater China, the rest of Asia, and internationally. At present, TPR sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for TPR’s current fiscal-year sales and earnings implies growth of 13.2% and 36.3%, respectively, from the year-ago figures. TPR has delivered a trailing four-quarter earnings surprise of 15.6%, on average.
Victoria’s Secret & Co. VSCO operates as a specialty retailer of women's intimate apparel and other apparel and beauty products worldwide. At present, VSCO carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Victoria's Secret’s current fiscal-year sales and earnings indicates growth of 6.2% and 16.3%, respectively, from the year-ago figures. VSCO delivered a trailing four-quarter earnings surprise of 55.1%, on average.
Urban Outfitters, Inc. URBN offers lifestyle products and services in the United States and internationally. At present, URBN carries a Zacks Rank of 2.
The Zacks Consensus Estimate for URBN’s current fiscal-year sales and earnings implies growth of 8.5% and 9.7%, respectively, from the year-ago figures. URBN has delivered a trailing four-quarter earnings surprise of 12.2%, on average.
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Urban Outfitters, Inc. (URBN): Free Stock Analysis Report
Boot Barn Holdings, Inc. (BOOT): Free Stock Analysis Report
Tapestry, Inc. (TPR): Free Stock Analysis Report
Victoria's Secret & Co. (VSCO): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).