Boot Barn Holdings Inc. (NYSE: BOOT) entered the market Thursday morning when it had its initial public offering (IPO). The underwriters for the offering were J.P. Morgan, Wells Fargo, Piper Jaffray, Baird and Jeffries. Shares for the IPO originally priced at $16 on 5 million shares, raising $80 million. The pricing went on the high end of the range of $14 to $16.
However shares entered the market at $19.00, and the range on the day has been $17.94 to $19.50 — with the stock up 12.5% at $18.00 on 5.2 million shares at 12:45 p.m. Eastern Time.
Coming into this IPO, the company boasted 19 consecutive quarters of positive same store sales growth, averaging 11.6% per quarter, and same-store sales growth of 6.7% in the 2014 fiscal year. Net sales increased to $345.9 million in 2014 from $168.7 million in 2012, representing a compound annual growth rate of 43.2%. In 2014 there was a net income of $5.7 million, which was up from 2012 where there was a net loss of $5.3 million.
Boot Barn was founded in 1978. It has grown through sales and the acquisitions of competing chains. The company is a retail chain that deals in western and work-related footwear, apparel and accessories.
The company has 155 stores in 24 states as of late June. The store base expanded to 155 stores at the end of June from 86 stores as of the end of fiscal year 2012, with 14 new stores resulting from organic growth and 55 new stores resulting from strategic acquisitions.
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Boot Barn’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. The western assortment includes many of the industry’s brands, such as Ariat, Dan Post, Justin, Levi Strauss, Lucchese, Miss Me, Montana Silversmiths, Resistol and Wrangler.
Boot Barn now has a market cap of $462 million. Renaissance Capital also reported that Boot Barn has an enterprise value of $527 million.
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