ClearBridge Bets on Boot Barn Holdings for Growth
ClearBridge Investments has published its 'ClearBridge Small Cap Growth Strategy' second-quarter 2025 investor letter, highlighting Boot Barn Holdings, Inc. (NYSE:BOOT) as a key holding. The western and work boot retailer, specialising in footwear, apparel, and accessories, gained traction among hedge funds.
Boot Barn Holdings, Inc. (NYSE:BOOT) saw an increase in hedge fund interest, with 39 portfolios holding the stock at the end of the second quarter, up from 34 in the previous quarter. Notable investors include Verdence Capital Advisors LLC, Cetera Investment Advisers, MML Investors Services LLC, Nisa Investment Advisors LLC, and Park Avenue Securities LLC, who maintained or increased their positions in the company.
The strategy, however, modestly underperformed the Russell 2000 Growth Index in the quarter. This was due to a market rally driven by lower market capitalization stocks, lower-quality non-earners, and a surge in retail volume. Despite this, Boot Barn Holdings, Inc. (NYSE:BOOT) has a long runway for double-digit growth within a fragmented market and potential for healthy earnings growth through exclusive brands and margin efficiencies.
In the fiscal first quarter of 2026, Boot Barn Holdings, Inc. (NYSE:BOOT) reported impressive results. Revenue increased by 19% to $504 million, and consolidated same-store sales grew by 9.4%.
ClearBridge Investments' 'ClearBridge Small Cap Growth Strategy' has identified Boot Barn Holdings, Inc. (NYSE:BOOT) as a promising investment. With increased hedge fund interest and strong fiscal first quarter results, the company's prospects for growth and earnings improvement remain positive.
