Shares of Boot Barn Holdings Inc. (BOOT) surged 14.43% in pre-market trading on Thursday, following the company's fourth-quarter earnings report and positive outlook for the upcoming quarter. The Western apparel retailer's stock rally was fueled by a combination of better-than-expected guidance and the announcement of a substantial share repurchase program.

Despite posting downbeat earnings for its fourth quarter, Boot Barn provided an optimistic forecast for the first quarter of fiscal 2026. The company anticipates first-quarter sales between $483 million and $491 million, with the midpoint surpassing Wall Street estimates of $486.5 million. Boot Barn also expects earnings per share in the range of $1.44 to $1.52, compared to analysts' expectations of $1.44. This upbeat guidance suggests that the retailer is confident in its near-term growth prospects, despite ongoing economic uncertainties.

Adding to investor enthusiasm, Boot Barn's board of directors authorized a $200 million stock buyback program. This move signals management's confidence in the company's financial position and its commitment to enhancing shareholder value. The combination of strong guidance and the share repurchase announcement has clearly resonated with investors, driving the significant pre-market rally in Boot Barn's stock price.