Investing.com -- BTIG has named On Holding (NYSE:ONON) and Boot Barn (NYSE:BOOT) as its top picks in the consumer retail space, pointing to their momentum and resilience in an otherwise cautious macro environment.
On Holding stands out for its "superior top-line momentum," which BTIG expects to be sustained as the brand gains traction across both performance running and lifestyle footwear.
“Growth is appearing increasingly balanced among running, lifestyle, training, and other sports, with many styles now reaching a critical mass,” BTIG said in a note, noting that proprietary survey data showed an uptick in running-related intent to purchase.
The investment bank also pointed to strength in wholesale sell-through, share gains at specialty retailers, and upcoming distribution efficiencies from its Atlanta warehouse automation.
ONON’s valuation reflects this high-growth profile, with BTIG applying a 40x price-to-earnings (P/E) and 30x EV/EBITDA multiple on fiscal 2026 estimates to reach a $67 price target.
“This is in-line with history but a premium to peers, given the track record of outsized growth and margin expansion,” BTIG said.
Boot Barn, meanwhile, is highlighted for combining growth potential with operational stability. The retailer “can nearly triple the store base with ~mid-teens unit growth near-term,” according to the report.
BTIG sees BOOT’s market share gains during COVID as “stickier than the market believes” and argues that recent margin improvements appear structural rather than cyclical.
The company also benefits from a relatively defensive business model amid macro uncertainty, and the ability to negotiate with brand partners to help offset tariff headwinds.
While broader consumer caution and tariff concerns have pressured sentiment in the retail sector, BTIG sees these two names as well-positioned.
ONON is seen as having one of the lowest tariff exposures among its peers and the brand’s pricing power could provide a buffer if inflation persists. BOOT, despite some tariff exposure via Mexico and China, is considered well-equipped to manage through supply chain disruption.
Beyond ONON and BOOT, other Buy-rated names within the sector include Birkenstock (NYSE:BIRK), Lululemon (NASDAQ:LULU), Revolve Group LLC (NYSE:RVLV), Warby Parker (NYSE:WRBY), and Steven Madden Ltd (NASDAQ:SHOO).
Overall, BTIG favors brands with structural tailwinds, strong balance sheets, and the flexibility to operate offensively in a more defensive market.
