Boot Barn's Turbulent Week: CEO Change Overshadows Solid Quarterly Report

In a week full of turbulence, Boot Barn found itself at the center of stock market reporting. It was not so much the pleasing results of the second fiscal quarter that drew attention, but rather a surprising announcement from the executive suite. The stock market responded promptly, and the company's shares fell by nearly 21%, according to data from S&P Global Market Intelligence. Monday brought two significant pieces of news at once. Boot Barn's quarterly figures slightly exceeded analysts' expectations: Revenue rose by 12% to over $849 million, supported by an increase in same-store sales of nearly 5%. The GAAP net profit also slightly surpassed the previous year, climbing to over $29 million ($0.95 per share). However, investors quickly focused on another announcement: Long-time CEO Jim Conroy announced his resignation effective November 24. Conroy is moving to the discount chain Ross Stores, where he will initially serve as co-CEO and later as sole CEO. Analysts remain optimistic, however. Despite Conroy's resignation, confidence in Boot Barn remains unbroken. Several analysts reiterated their buy recommendations or raised their price targets. Specifically, Baird gave the stock a boost by upgrading the rating from neutral to outperform. In contrast, the Motley Fool Stock Advisor analysts are focusing on other favorites and are sidelining Boot Barn for now. Ten stocks selected by them could achieve impressive returns in the coming years, as was the case with Nvidia in 2005.