Investing.com – Shares of Boot Barn Holdings fell 6% in premarket trading on Tuesday following the announcement that veteran CEO Jim Conroy will step down to lead Ross Stores (NASDAQ:).
Conroy, who has led Boot Barn (NYSE since 2012, will join Ross as CEO-elect on Dec. 2, 2024 and assume the full role of CEO on Feb. 2, 2025, according to a news release from Ross Stores .
Ross's leadership change marks the end of an extensive succession plan, replacing Barbara Rentler, who has served as CEO since 2014 and will remain an advisor until March 2027.
“I am very excited to join the company and have the opportunity to work with a tremendously talented leadership team,” Conroy said in the announcement.
While Boot Barn shares fell, analysts consider the CEO transition manageable.
Piper Sandler reiterated her overweight rating and $179 price target on the stock, describing the exit as “surprising but not concerning.”
Piper Sandler said: “While we will miss Jim Conroy, we do not expect any change in strategy or fundamentals as a very strong and long-standing team remains in place.”
Boot Barn chief digital officer John Hazen will take over as interim CEO.
The market reaction comes on the heels of strong earnings from Boot Barn, which raised its full-year guidance. According to Piper Sandler, the company is experiencing “accelerated market share gains” and continues to have a “20%+ EPS growth story.” The company suggested using the stock's pullback as a buying opportunity.
Bernstein analysts highlighted the strategic importance of Conroy's move for Ross, noting his extensive retail experience and strong leadership record.
Ross CEO Michael Balmuth expressed confidence, saying: “Jim is a proven retail executive. They added that he will “help drive profitable growth for our company.”
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