Boot Barn Holdings (BOOT, Financial) shares took a nosedive of over 19% as second-quarter earnings failed to meet Street estimates, and the company suddenly announced its Chief Executive, Jim Conroy was resigning.
The western wear retailer recorded adjusted earnings of $0.95 per share for the quarter ending September 28, slightly missing the analysts' forecast of $0.96 per share. However, it was slightly above the forecasted figure, amounting to $425.8 million, as compared to the estimated $424.5 million. From the same period last year, it had a 13.7% increase.
However, same-store sales indicated a strong increase of 4.9% over the same period last year, supported by a 4.3% increase in retail store sales and a commendable 10.1% growth in internet sales.
Amid these mixed financial results, Boot Barn disclosed an important change in the leadership. CEO Jim Conroy is planning to step down on November 22 to join Ross Stores Inc (NASDAQ). The current Chief Digital Officer, John Hazen, will take over the position of Interim CEO.
Conroy said that we saw growth across all our sales categories, opened 15 new stores in our fiscal second quarter, and exceeded our guidance in earnings per diluted share.
Moving to the future, Boot Barn has outlined forecast revenue growth of $1.874 billion to $1.907 billion for the fiscal year 2025, a growth of 12.4% to 14.4% against the similar period of the previous year, close to the $1.87 billion as postured by analysts. Such a forecast proves that the company is rather invulnerable and can easily overcome market challenges, such as current reactions and the upcoming change of executives.
