From Yahoo Finance: 2025-04-28 08:56:00

SouthernSun Asset Management, LLC released its Q1 2025 investor letter, revealing a -11.32% return for its Small Cap Strategy compared to -9.48% for the Russell 2000 Index. Boot Barn Holdings, Inc. (NYSE:BOOT) was a top detractor, with shares losing 6.56% over 52 weeks. The company imports 30% of products from China but expects to offset tariffs with pricing strategies.

In its Q1 2025 letter, SouthernSun Small Cap Strategy discussed Boot Barn Holdings, Inc. (NYSE:BOOT), noting a strong performance in 2024 and a 23% EBITDA/share growth over 5 years. Despite concerns about consumer health and rising import costs, the company has a strong market position, growth plans, improving margins, and a solid balance sheet.

Boot Barn Holdings, Inc. (NYSE:BOOT) was not among the 30 Most Popular Stocks Among Hedge Funds in 2024. However, 29 hedge fund portfolios held the stock at the end of Q4. The company saw a 16.9% increase in net sales to $608 million in Q3 of fiscal 2025. While the potential for Boot Barn Holdings, Inc. (NYSE:BOOT) as an investment is recognized, AI stocks are seen as having greater promise for delivering higher returns in a shorter timeframe.

Read more: Here’s What Affected Boot Barn Holdings (BOOT) in Q1