Shares of cowboy-boot and Western-wear retailer Boot Barn Holdings Inc. are “significantly undervalued,” but country music, rodeo and “the Taylor Swift effect” could pave the way for bigger gains, analysts said on Monday. “[Boot Barn] shares are well below peak levels, and we see ample opportunity ahead with Country music becoming increasingly prevalent and rodeo season in full swing,” analysts at Jefferies said in a note on Monday.
They also said that Taylor Swift’s Eras tour could translate into more sales for Boot Barn
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as concertgoers plan what to wear to the shows. “With 2.4 million Taylor Swift tickets sold on Ticketmaster and Seat Geek, which averages out to [about 46,000] per venue, we believe this help will drive top-line for [Boot Barn],” the analysts said. They added that Google searches for “cute boots” and “what to wear to Taylor Swift concert” rose after Swift’s concert tickets went on sale last year. And they said that if 2% of Swift concert attendees spent an average of $110 at Boot Barn — the amount of a typical purchase there — the tour could result in $10.6 million in extra sales in the first half of Boot Barn’s fiscal 2024, which begins in early spring. The analysts also pointed to country music’s popularity on the radio and on Apple Music
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and they noted last year’s massive concert-industry comeback following two years of pandemic-related restrictions. Live Nation Entertainment Inc.
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