Best mid-cap retail stocks to invest in 2025

The mid-cap retail sector remains an attractive space for investors looking for growth-driven companies with unique market positions and strong performance. From innovative beauty brands to specialized retail niches, these companies are making waves in the industry.

Boot Barn Holdings dominates the western retail market with over 380 stores and strong brand recognition among customers seeking authentic western lifestyle products. e.l.f. Beauty continues to disrupt the beauty industry with its affordable yet high-quality cosmetic products and strong digital presence that appeals to younger demographics. Urban Outfitters operates distinctive lifestyle brands including Urban Outfitters, Anthropologie, and Free People that resonate with fashion-conscious consumers seeking unique merchandise.

These standout mid-cap retail companies showcase diverse strengths and growth trajectories, making them promising picks for 2025. Explore our detailed insights to understand how these firms could elevate your portfolio's performance.

Roboforex R-Trader gives you access to over 10,000 stocks, ETFs, commodities, and crypto. All of the stocks mentioned in this article are available for purchase there.

Before we dive into each company, let`s take a look at how your investment would have performed if you had invested in top 10 stocks mentioned in this article 5 years ago.

Now, let`s take a closer look at each of the companies:

  • Boot Barn Holdings (NYSE:BOOT)

    Boot Barn Holdings Inc. is the leading lifestyle retailer of western and work-related footwear, apparel, and accessories in the United States, serving customers through both physical stores and e-commerce platforms. Founded in 1978 and headquartered in Irvine, California, the company has established itself as the dominant player in the western retail market with over 380 stores across 42 states. Boot Barn has built a strong brand reputation among customers seeking authentic western lifestyle products, work boots, and outdoor gear, while maintaining a loyal customer base that values quality, authenticity, and specialized product knowledge.

    The company's core operations focus on retailing western and work-related merchandise including boots, jeans, hats, belts, and accessories from leading brands as well as exclusive private label products. Boot Barn serves a diverse customer base including ranchers, farmers, construction workers, outdoor enthusiasts, and fashion-conscious consumers who embrace the western lifestyle. With the continued popularity of western fashion trends, growing interest in outdoor activities, and the company's strategic expansion into new markets, Boot Barn is well-positioned to capitalize on the enduring appeal of western culture while expanding its market reach across the United States.

    Boot Barn Holdings financial statements

    Analysts recommendation: 2.3

    Financial Health

    • Return on assets (ROA): 8.9%
    • Return on equity (ROE): 18.4%
    • Return on investment (ROI): 12.6%

    Profitability

    • Gross margin: 36.8%
    • Operating margin: 11.7%
    • Net profit margin: 7.9%

    Growth

    • EPS (past 5 years): 28.7%
    • EPS (current): 4.85
    • EPS estimate (next quarter): 1.25
    • EPS growth (this year): 26.3%
    • EPS growth (next year): 12.8%
    • EPS growth (next 5 years): 15.4%
    • EPS growth (quarter-over-quarter): 31.2%
    • Sales growth (past 5 years): 22.1%
    • Sales growth (quarter-over-quarter): 18.6%

    💡 Why invest in Boot Barn Holdings?

    Like a trusted outfitter that equips the American frontier spirit, Boot Barn Holdings demonstrates compelling strengths that make it attractive in the specialty retail sector:

    • Market Leadership Position: Boot Barn dominates the western retail market with over 380 stores and strong brand recognition, creating significant competitive advantages and barriers to entry for potential competitors.
    • Loyal Customer Demographics: Serves dedicated customer segments including ranchers, construction workers, and western lifestyle enthusiasts who demonstrate strong brand loyalty and consistent repeat purchase behavior patterns.
    • Omnichannel Growth Strategy: The company has successfully developed e-commerce capabilities and digital marketing initiatives that complement physical stores and drive customer engagement across multiple channels.
    • Expanding Market Opportunity: Benefits from growing interest in western fashion trends, outdoor activities, and work-related apparel that extends beyond traditional rural markets into expanding suburban and urban areas.

    🐌 Key considerations before investing in Boot Barn Holdings

    However, like navigating changing retail landscapes where consumer preferences shift and competitive pressures mount, Boot Barn Holdings faces several challenges that specialty retail investors must consider:

    • Niche Market Dependency: Heavy reliance on western and work-related merchandise creates vulnerability to changes in fashion trends, economic conditions affecting rural customers, and shifts in lifestyle preferences.
    • Economic Sensitivity Risk: Performance is closely tied to economic conditions in rural and industrial markets, making the company particularly vulnerable to downturns in agriculture, construction, and energy sectors.
    • Competitive Retail Pressure: Faces increasing competition from general retailers, online marketplaces, and direct-to-consumer brands that may offer similar products at competitive prices with broader market reach.
    • Store Expansion Challenges: Continued growth requires successful new store openings in appropriate markets while maintaining profitability and avoiding oversaturation in existing territories and regional markets.

    Final thoughts on Boot Barn Holdings

    Boot Barn Holdings' market leadership position, loyal customer demographics, omnichannel growth strategy, and expanding market opportunity create solid opportunities for investors seeking exposure to specialty western retail. However, the company's niche market dependency, economic sensitivity, competitive pressures, and expansion challenges require careful evaluation of the risks in specialized retail investing. Like a reliable general store that serves its community's unique needs, Boot Barn offers growth potential for investors who understand both the opportunities and limitations of niche retail markets.

  • e.l.f. Beauty (NYSE:ELF)

    e.l.f. Beauty, Inc. is a leading cosmetics and skincare company, headquartered in Oakland, California. Founded in 2004, the company has quickly risen to prominence in the beauty industry by offering high-quality, affordable products. The brand's name, 'e.l.f.,' stands for 'eyes, lips, face,' reflecting its commitment to providing a wide range of products for all aspects of beauty and self-expression.

    The company specializes in cruelty-free and vegan cosmetics, skincare, and beauty tools, catering to consumers who value ethical and accessible beauty products. Known for its innovative approach, e.l.f. Beauty frequently introduces trend-forward items while maintaining affordable price points. With a strong digital presence and a loyal customer base, e.l.f. Beauty continues to disrupt the industry and redefine what it means to deliver beauty without compromise.

    e.l.f. Beauty financial statements

    Analysts recommendation: 1.76

    Financial Health

    • Return on assets (ROA): 9.43%
    • Return on equity (ROE): 15.97%
    • Return on investment (ROI): 10.51%

    Profitability

    • Gross margin: 67.88%
    • Operating margin: 12.06%
    • Net profit margin: 8.53%

    Growth

    • EPS (past 5 years): 40.42%
    • EPS (current): 1.92
    • EPS estimate (next quarter): 0.86
    • EPS growth (this year): 8.36%
    • EPS growth (next year): 18.58%
    • EPS growth (next 5 years): 14.4%
    • EPS growth (quarter-over-quarter): 96.18%
    • Sales growth (past 5 years): 35.95%
    • Sales growth (quarter-over-quarter): 3.58%

    💡 Why invest in e.l.f. Beauty?

    Like a trendsetting beauty innovator that democratizes cosmetics through affordable luxury, this company demonstrates compelling strengths that make it attractive in the dynamic beauty sector:

    • Affordability Arsenal: e.l.f. reigns supreme in the budget beauty space, catering to a broader, ever-expanding customer base, offering high-quality makeup at accessible prices, boosting market share and brand loyalty.
    • Trend-Hunting Titan: e.l.f. boasts a nimble and agile team, constantly adapting to evolving trends and social media-driven consumer preferences, ensuring its offerings stay fresh, relevant, and in-demand.
    • Digital Detoxification Diva: Embracing online platforms and influencer marketing, e.l.f. bypasses traditional advertising costs, building a direct and engaged community, boosting brand awareness and customer connections.
    • Sustainability Striver: e.l.f. commits to environmentally conscious packaging and cruelty-free practices, aligning with investor preferences for ethical companies and attracting a value-conscious customer base.

    🐌 Key considerations before investing in e.l.f. Beauty

    However, like navigating the fast-changing beauty landscape where trends shift rapidly and competitive pressures intensify, this company faces several challenges that beauty sector investors must consider:

    • Valuation Concerns: Like many emerging growth companies, ELF's stock currently sits near all-time highs, demanding a cautious approach due to potentially limited immediate gains. A patient, long-term perspective might be wise.
    • Profitability Pinch: Lower price points and fierce competition in the beauty space can strain margins, demanding close analysis of e.l.f.'s cost-cutting strategies and ability to maintain profitability.
    • Brand Perception Hurdles: Shifting from budget brand to mainstream player might pose challenges, requiring strategic marketing and product development to shed potential 'cheap' and 'low-quality' associations.
    • Economic Sensitivity Concerns: Consumer spending on non-essential items like cosmetics can decline significantly during economic downturns, potentially impacting e.l.f.'s sales performance and future growth prospects.

    Final thoughts on e.l.f. Beauty

    This company's affordability advantage, trend-chasing agility, digital prowess, and sustainability commitment create compelling opportunities for investors seeking exposure to the dynamic beauty sector. However, near-peak valuation, potential profitability challenges, brand perception hurdles, and economic sensitivity warrant careful evaluation of the risks in beauty investing. Like a trendsetting cosmetics artist that transforms affordable ingredients into premium results, this beauty innovator offers growth potential for investors who understand both the opportunities and volatility of the evolving beauty market.

  • Urban Outfitters (NYSE:URBN)

    Urban Outfitters Inc. is a leading lifestyle retail company that operates a portfolio of global consumer brands targeting young adults and teens through distinctive retail concepts and digital platforms. Founded in 1970 and headquartered in Philadelphia, Pennsylvania, the company has established itself as a prominent player in the specialty retail sector with over 600 stores across North America and Europe. Urban Outfitters has built a strong brand portfolio including Urban Outfitters, Anthropologie, Free People, and other lifestyle brands that resonate with fashion-conscious consumers seeking unique and trendy merchandise.

    The company's core operations encompass retail sales through physical stores and e-commerce platforms, offering apparel, accessories, home goods, and lifestyle products across its various brand concepts. Urban Outfitters has successfully developed distinct brand identities that cater to different customer demographics while maintaining strong digital presence and omnichannel capabilities. With the continued growth of online retail, evolving consumer preferences toward experiential shopping, and the company's established brand recognition among younger demographics, Urban Outfitters is positioned to capitalize on retail trends while navigating the challenges of the competitive fashion retail landscape.

    Urban Outfitters financial statements

    Analysts recommendation: 2.7

    Financial Health

    • Return on assets (ROA): 4.8%
    • Return on equity (ROE): 9.2%
    • Return on investment (ROI): 6.4%

    Profitability

    • Gross margin: 34.7%
    • Operating margin: 8.9%
    • Net profit margin: 5.8%

    Growth

    • EPS (past 5 years): 6.3%
    • EPS (current): 2.15
    • EPS estimate (next quarter): 0.85
    • EPS growth (this year): 22.4%
    • EPS growth (next year): 8.7%
    • EPS growth (next 5 years): 9.8%
    • EPS growth (quarter-over-quarter): 18.9%
    • Sales growth (past 5 years): 4.2%
    • Sales growth (quarter-over-quarter): 6.8%

    💡 Why invest in Urban Outfitters?

    Like a trendsetting fashion curator that captures the pulse of youth culture, Urban Outfitters demonstrates compelling strengths that make it attractive in the specialty retail sector:

    • Strong Brand Portfolio: Urban Outfitters operates distinctive lifestyle brands including Urban Outfitters, Anthropologie, and Free People that resonate with target demographics and command premium pricing power.
    • Digital Commerce Leadership: The company has successfully developed robust e-commerce platforms and omnichannel capabilities that drive online sales growth and enhance customer engagement across all brand concepts.
    • Unique Merchandising Strategy: Urban Outfitters differentiates itself through curated product selection, exclusive collaborations, and trend-forward merchandise that creates customer loyalty and reduces direct competition.
    • Young Demographics Appeal: The company's brands strongly appeal to millennials and Gen Z consumers who represent growing purchasing power and demonstrate strong brand affinity and active social media engagement.

    🐌 Key considerations before investing in Urban Outfitters

    However, like navigating the fast-changing fashion landscape where consumer trends shift rapidly and competitive pressures intensify, Urban Outfitters faces several challenges that retail investors must consider:

    • Fashion Trend Sensitivity: The company's success depends heavily on accurately predicting and responding to rapidly changing fashion trends, creating vulnerability to inventory markdowns and missed opportunities.
    • Intense Retail Competition: Faces strong competition from fast fashion retailers, online-only brands, and traditional department stores competing for the same young adult demographic with similar merchandise.
    • Economic Sensitivity Risk: As a discretionary retailer, Urban Outfitters is particularly vulnerable to economic downturns, reduced consumer spending, and changes in disposable income among its target demographic.
    • Physical Store Challenges: Maintaining profitable physical retail locations amid rising rents, changing shopping patterns, and the shift toward online shopping creates ongoing operational and financial pressures.

    Final thoughts on Urban Outfitters

    Urban Outfitters' strong brand portfolio, digital commerce leadership, unique merchandising strategy, and appeal to young demographics create solid opportunities for investors seeking exposure to specialty fashion retail. However, the company's sensitivity to fashion trends, intense competition, economic vulnerability, and physical store challenges require careful evaluation of the risks in retail investing. Like a fashion-forward boutique that must constantly reinvent itself to stay relevant, Urban Outfitters offers growth potential for investors who understand both the opportunities and volatility of the specialty retail market.

  • Murphy USA (NYSE:MUSA)

    Murphy USA Inc. is a leading retailer of gasoline and convenience store merchandise operating over 1,700 locations primarily situated near Walmart stores across the United States. Founded in 1996 and headquartered in El Dorado, Arkansas, the company was established as a spin-off from Murphy Oil Corporation in 2013 and has grown into a major player in the fuel retailing industry. The company serves millions of customers nationwide, offering quality fuel at competitive prices alongside convenience store merchandise.

    The company specializes in the sale of retail fuel and convenience store products including snacks, beverages, and everyday essentials. Known for its focus on affordability and operational efficiency, Murphy USA has built a loyal customer base by providing value and convenience through strategic partnerships with Walmart. Committed to operational excellence and digital innovation, the company continues to expand its footprint while enhancing the customer experience through mobile applications and loyalty programs.

    Murphy USA financial statements

    Analysts recommendation: 2.3

    Financial Health

    • Return on assets (ROA): 11.12%
    • Return on equity (ROE): 65.24%
    • Return on investment (ROI): 15.36%

    Profitability

    • Gross margin: 4.88%
    • Operating margin: 3.71%
    • Net profit margin: 2.46%

    Growth

    • EPS (past 5 years): 37.76%
    • EPS (current): 23.72
    • EPS estimate (next quarter): 6.88
    • EPS growth (this year): -1.07%
    • EPS growth (next year): 15.71%
    • EPS growth (next 5 years): 8.02%
    • EPS growth (quarter-over-quarter): -15.57%
    • Sales growth (past 5 years): 7.6%
    • Sales growth (quarter-over-quarter): -6.57%

    💡 Why invest in Murphy USA?

    Like a strategic fuel depot positioned at the crossroads of American commerce, Murphy USA creates value through location advantages and operational efficiency:

    • Strategic Positioning: Murphy USA operates over 1,700 locations primarily adjacent to Walmart stores, leveraging high-traffic retail locations to maximize customer convenience and fuel volume sales through strategic partnerships.
    • Low-Cost Strategy: The company focuses on competitive fuel pricing and operational efficiency to attract value-conscious consumers, creating customer loyalty and market share advantages in competitive fuel retail.
    • Convenience Integration: Murphy USA combines fuel sales with convenience store merchandise including snacks, beverages, and essentials, creating additional revenue streams and improving customer visit frequency and transaction values.
    • Digital Innovation: The company leverages mobile applications and digital loyalty programs to enhance customer engagement, provide exclusive deals, and streamline payment processes for improved customer experience and retention.

    🐌 Key considerations before investing in Murphy USA

    Even the most strategically positioned fuel retailers face challenges that can impact their ability to maintain consistent profitability and growth:

    • Fuel Price Volatility: Murphy USA's profitability depends heavily on fuel margins and wholesale gasoline costs, making the company vulnerable to oil price fluctuations and supply chain disruptions that can compress margins.
    • Competitive Pressure: The fuel retail industry faces intense competition from established chains, independent operators, and big-box retailers, pressuring margins and requiring continuous investment in pricing strategies.
    • Economic Sensitivity: Consumer fuel consumption and convenience store spending correlate with economic conditions, making Murphy USA vulnerable to recessions and changes in consumer driving patterns and discretionary spending.
    • Regulatory Compliance: The company operates in a heavily regulated environment with environmental standards, fuel quality requirements, and safety regulations that can increase operational costs and compliance complexity.

    Final thoughts on Murphy USA

    Murphy USA's strategic positioning near Walmart locations, competitive fuel pricing, and convenience store integration create compelling advantages in the essential fuel retail market. However, investors must consider fuel price volatility and competitive pressures that characterize the retail fuel sector. Like a well-positioned service station at a busy intersection, Murphy USA's location advantages and operational efficiency become increasingly valuable as consumer convenience and value-seeking behavior drive fuel purchasing decisions.

If you are interested in other stock categories, check out my other lists of the best mid-cap industrial, energy, basic materials, utility, retail, healthcare, tech, financial, semiconductor stocks.