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IPO Report: Boot Barn Holdings (BOOT)

Boot Barn Holdings (BOOT) is the largest and fastest-growing lifestyle retail chain devoted to western and work-related footwear, apparel and accessories in the U.S. It is headquartered in Irvine,

Boot Barn Holdings (BOOT) is the largest and fastest-growing lifestyle retail chain devoted to western and work-related footwear, apparel and accessories in the U.S. It is headquartered in Irvine, CA.

Two other companies are scheduled to IPO for the week of Oct. 27, 2014.  The full IPO calendar is available at IPOpremium.

Manager, Joint-managers: J.P. Morgan, Piper Jaffray, Jefferies 
Co-managers: Wells Fargo Securities, Baird

BOOT scheduled a $75 million IPO with a market capitalization of $374 million at a price range midpoint of $15 for Thursday, Oct. 30, 2014 on NYSE.  SEC filings

Boot Barn IPO Overview

BOOT is the largest and fastest-growing lifestyle retail chain devoted to western and work-related footwear, apparel and accessories in the U.S.

158 stores in 24 states.  Believes the market potential is 400 stores.

BOOT Valuation


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Valuation Ratios

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% offered in IPO

Annualizing June '14 qtr


Boot Barn Holdings (BOOT)









Neutral plus

67 P/E based on annualizing June qtr, seems high

Dilution of -$-16.74 more than IPO mid-range of $15

Rev rate of change slowed in Sept  qtr

+12% Sept qtr; +28 June 6 mos compared to year earlier results

Same store sales increase of 7%

158 stores, 400 potential


BOOT is the largest and fastest-growing lifestyle retail chain devoted to western and work-related footwear, apparel and accessories in the U.S.

With 158 stores in 24 states as of September 27, 2014, BOOT has over twice as many stores as its nearest direct competitor that sells primarily western and work wear, and believes it has the potential to grow its store base to at least 400 domestic locations.


The U.S. western and work wear markets represented approximately $8 billion and $12 billion in retail sales, respectively, in calendar year 2013.

The western wear market is composed of footwear, apparel and accessories, which in 2013 represented approximately $3.0 billion, $3.5 billion and $1.5 billion in retail sales, respectively.

The work wear market is composed of footwear and apparel, which in 2013 represented approximately $3.0 billion and $9.0 billion in retail sales, respectively.

Between 2009 and 2013, the western and work wear markets experienced estimated annual retail sales growth of approximately 6% to 8% and 1% to 3%, respectively.

Over the next three to five years, M?d (a market researcher) estimates that retail sales in the western and work wear markets will grow annually at approximately 3% to 5% and 2% to 4%, respectively.

BOOTs believes that growth in the western wear market has been and will continue to be driven by the growth of western events, such as rodeos, the popularity of country music and the continued strength and endurance of the western lifestyle

New store model

As of the end of fiscal 2014, all of BOOT's stores included in same store sales were profitable. The new store model requires an average net cash investment of approximately $670,000 and targets an average payback period of less than three years.

BOOT believes it can grow its store base in the U.S. by at least 10% annually for the next several years.

Freestanding or in strip centers

BOOT’s stores, which are typically freestanding or located in strip centers, average 10,800 square feet and feature a comprehensive assortment of approximately 200 brands and more than 1,500 styles on average, coupled with attentive, knowledgeable store associates.

BOOT targets a broad and growing demographic, ranging from passionate western and country enthusiasts to workers seeking dependable, high-quality footwear and clothing. BOOT strives to offer an authentic, one-stop shopping experience that fulfills the everyday lifestyle needs of its customers and, as a result, many of its customers make purchases in both the western and work wear sections of BOOT’s stores.

BOOT’s store environment, product offering and marketing materials represent the aesthetics of the true American West, country music and rugged, outdoor work.

These threads are woven together in BOOT’s motto, "Be True", which communicates the genuine and enduring spirit of the Boot Barn brand.

Complemented by apparel and accessories

BOOT’s product offering is anchored by an extensive selection of western and work boots and is complemented by a wide assortment of coordinating apparel and accessories.

Many of the items that BOOT offers are basics or necessities for its customers' daily lives and typically represent enduring styles that are not impacted by changing fashion trends.

Accordingly, approximately 70% of BOOT’s inventory is kept in-stock through automated replenishment programs.

The majority of BOOT’s merchandise is sold at full price and is not subject to typical inventory markdowns.

BOOT’s boot selection, which comprises approximately one-third of each store's selling square footage space, is merchandised on self-service fixtures with western boots arranged by size and work boots arranged by brand.

This allows BOOT to display the full breadth of BOOT’s inventory and deliver a convenient shopping experience.

BOOT also carries market-leading assortments of denim, western shirts, cowboy hats, belts and belt buckles, western-style jewelry and accessories. BOOT’s western assortment includes many of the industry's most sought-after brands, such as Ariat, Dan Post, Justin, Levi Strauss, Lucchese, Miss Me, Montana Silversmiths, Resistol and Wrangler. BOOT’s work assortment includes rugged footwear, outerwear, overalls, denim and shirts for the most physically demanding jobs where durability, performance and protection matter, including safety-toe boots and flame-resistant and high-visibility clothing.

Among the top work brands sold in BOOT’s stores are Carhartt, Dickies, Timberland Pro and Wolverine. BOOT’s merchandise is also available on its e-commerce website,


Freeman Spogli & Co. is a private equity firm dedicated exclusively to investing and partnering with management in consumer-related and distribution companies in the U.S. Since its founding in 1983, Freeman Spogli & Co. has invested $3.3 billion of equity in 50 portfolio companies with aggregate transaction values of $20 billion. Freeman Spogli & Co. acquired its shares of our common stock in December 2011

Intellectual property
BOOT regards its trademarks as having value and as being important to its marketing efforts. BOOT has registered its trademarks in the U.S., including its brand name "Boot Barn" and its private label brands.

BOOT has not sought foreign trademark protection because BOOT does not actively conduct business outside of the U.S. BOOT also owns the domain name for its website,

BOOT’s policy is to pursue registration of its trademarks and to oppose their infringement by third parties.


BOOT estimates that there are thousands of independent specialty stores scattered across the country.

BOOT believes that it competes primarily with smaller regional chains and independents on the basis of product quality, brand recognition, price, customer service and the ability to identify and satisfy consumer demand.

However, BOOT also competes with farm supply stores, online retailers and, to a lesser degree, mass merchants, some of which are significantly larger than us, but most of which realize only a small percentage of their total revenues from the sale of western and work wear.

5% shareholders pre-IPO

Freeman Spogli & Co.   89.1%             


No dividends are planned.

Use of proceeds

BOOT expects to receive $67 million for its IPO and use it for the following:

to repay a portion of its existing term loan facility, including applicable prepayment penalties and fees, in the amount of approximately $66.9 million. BOOT’s term loan facility matures on May 31, 2019 and bears interest at LIBOR or at a base rate, plus an applicable margin. The applicable margin rate is 5.75% with respect to a LIBOR loan and 4.75% with respect to a base rate loan.


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