Investing.com -- Boot Barn Holdings shares dropped 6% in premarket trading Tuesday following the announcement that longtime CEO Jim Conroy will depart to lead Ross Stores (NASDAQ:ROST).
Conroy, who has led Boot Barn (NYSE:BOOT) since 2012, will join Ross as CEO-elect on December 2, 2024, and assume the full CEO role on February 2, 2025, according to a press 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 be joining the company and for the opportunity to work with a tremendously talented leadership team,” Conroy stated in the announcement.
While Boot Barn's shares declined, analysts view the CEO transition as manageable.
Piper Sandler reiterated its Overweight rating and $179 price target on the stock, describing the departure as “surprising but not concerning.”
Piper Sandler noted, “While Jim Conroy will be missed, we don't expect any change to strategy or fundamentals, as a very strong and long-tenured team remains in place.”
Boot Barn’s Chief Digital Officer, John Hazen, will step in as interim CEO.
The market reaction comes on the heels of solid earnings from Boot Barn, which raised its full-year guidance. According to Piper Sandler, the company is experiencing “accelerated market share gains” and remains a “20%+ EPS growth story.” The firm 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’s Executive Chairman Michael Balmuth expressed confidence, saying, "Jim is a proven retail executive. They added that he will "help drive our company’s profitable growth.”