I’m about 8 mins into the retailroadshow, this is the most 'MERICAN IPO I’ve ever seen LOL
I’ll post some observations and thoughts, in case someone doesn’t read the prospectus or watch the 32 min video.
I buy Ariat endurance riding / trail running boots at Boot Barn.
I’d love to see their IPO go like gangbusters.
I bought a shirt and a hat there last year with my rodeo volunteer discount. Haven’t been back since.
Haven’t looked at the prospectus but might skim if I have some time. I think it’s an interesting brand with a good customer base. I could see them going into small towns and killing the mom and pops, which they are already doing.
The video said something like 80% (can’t rewind on there), of sales are at full retail price. I’m curious what their inventory turnover is compared to typical retailers (probably much slower). A big network of stores has it’s benefits for items like boots. They plan on opening many stores (they acquired a bunch not too long ago). Quick thought, the locations don’t have to be prime/luxury, probably very cheap rents.
Honestly, I dunno about this one, all roadshows and most of the prospectus is to be taken at face value and for what it is, a marketing piece. I don’t know if I can believe the huge growth story, like all of them say.
I don’t see a lot of repeat business either. How often does someone really buy a new hat and cowboy boots? I doubt they wear out quickly. They mentioned that women shop there too but I bet total revenue man vs women would show one dominating. And we know that group does not buy clothes for the sake of buying clothes.They mention work clothes but how often are those items purchased and they aren’t the only players in that segment.
They showed revenue growth in the slides and same store sales, but I wonder if those numbers could be skewed due to so many of the stores being newer stores. I can see a store selling this type of merchandise, getting a lot of business then slowing down after everyone has what they need.
Or I could be wrong, I dunno. Again, I haven’t read the prospectus or grinded numbers, just like thinking aloud.
I’ve been to Boot Barn once, and the only reason was because I volunteer with the Houston Rodeo and needed “western” clothes to conform with my volunteer uniform. They also extended a 10-20% discount to folks like me who have a rodeo badge. I have to say, around rodeo time those stores are PACKED. To the point where there are off duty cops directing traffic in the parking lot. There is probably repeat business, but if it’s like me, its a $50 ticket once a year.