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Expanding Boot Barn Thinks Consumers Will Tolerate Price Increases

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Retail chain Boot Barn, which will grow its door base by 27 in FY22 as it continues to expand its brand’s reach to new consumer segments, thinks product demand from U.S. footwear consumers will not be impacted by any looming product price increases.

“They (customers) typically need the product or want the product and will accept the price increase,” Boot Barn COO/CFO Greg Hackman told analysts earlier this month. Boot Barn passed along some vendor price hikes to customers in Q1 ended June 26 and Hackman admits there may be more on the horizon this fall and in early 2022.

“I think that what we’ve seen in the first quarter gives us confidence that we can continue to pass along the price increase to the consumer,” he added.

In recent months, Boot Barn says it has focused intently on growing its work business and adding new segments such as the more fashion-forward Wonderwest category and Country. The chain has also shifted its media and marketing to reach a larger population. It currently speaks to its more than four million active customers with email, direct mail, and digital efforts that are tailored based on demographics and purchase history.

In Q1/22, the retailer’s revenues increased 65 percent from the Q1/20 level to $306.3 million with ecommerce sales expanding 56 percent. There was double-digit sales growth in work boots, men’s and women’s western boots, hats, men’s and women’s western apparel and non-flame-resistant work apparel. And during July after the period ended, the chain began experiencing “over-indexed growth” in women’s Western boots, a most recent category laggard.

Boot Barn currently operates 276 stores across 36 states.