Boot Barn to benefit from ‘Taylor Swift effect’
The legions of Taylor Swift fans — and the dominance of country music — could give a big boost to Boot Barn, which already ranks as one of the nation’s fastest-growing retail brands.
The pop star’s Eras Tour, which kicked off last month and will conclude in August, could result in increased sales at Western-focused footwear, apparel and accessories retailer Boot Barn as concertgoers outfit themselves for the shows, according to analysts at Jeffries.
“BOOT [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, ‘Jeffries analysts said in a note entitled, “Don't Discount the Taylor Swift Effect, Shares Significantly Undervalued.”
With Taylor Swift tickets selling at high rates, the analysts quantified the potential benefit to Boot Barn.
“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 wrote.
The analysts found that when looking at Google Trends for “what to wear to Taylor Swift concert”, the popularity of the search rose after tickets for Swift’s tour went on sale, with many wardrobe ideas featuring cowboy hats, sequins, and Western boots.
According to the analysts, if 2% of Swift concert attendees spent an average of $110 at Boot Barn — the amount of a typical purchase at the chain — the tour could result in an estimated $10.6 million in incremental sales in the first half of Boot Barn’s fiscal 2024. The return of rodeos was cited as another catalyst to boost sales.
Boot Barn, one of Chain Store Age’s 2023 Breakout Retailer award winners, operates about 345 stores in 43 states. The company, which has upped its long-term store target to 900 locations, is on track to open 43 new stores in its current fiscal year. Its assortment has expanded from its legacy Western boots, cowboy hats and work wear to include cowboy-chic fashions and casual wear.
The Jeffries analysts visited Boot Barn stores in Nashville, Tenn., and Berks County, Pa., to check traffic trends and inventory levels.
“In our view, the inventory was well organized by size and displayed nicely on the boot racks, traffic was strong in both locations, and both hats and boots resonated within both markets,” they wrote. “We would also note that exclusive brand performance and interest appeared to be healthy.”