Boot Barn CEO Jim Conroy may not be a cowboy. But he's definitely a maverick.
Conroy, who grew up in New York, bucked common wisdom by stepping up the buildout of Boot Barn's physical stores. That's been his push since taking over as CEO in 2012.
Conroy's strategy turned into gold. Conroy and his team built Boot Barn into a retail success. It's now the leading lifestyle retail chain devoted to western and work-related footwear, apparel and accessories in the U.S.
But lassoing investors to his way of thinking took time. Other retailers rushed to cash in on e-commerce back in 2012. But the Boot Barn CEO set out to create something else: a lifestyle brand built on brick-and-mortar stores.
"People thought we were crazy to invest capital in stores, the dinosaur of retail," said Conroy, now 51. "It has played out to be the right strategy."
Lasso Big Gains Like The Boot Barn CEO
When Conroy joined the Irvine, Calif.-based retailer of western and workwear as president and CEO in 2012 it was doing less than $200 million in revenue. But he knew the retailer was "a big $20 billion business opportunity that was untapped," he said.
Conroy spotted the opportunity while interviewing to be Boot Barn CEO. He flew to Texas and California. He studied stores in those markets. And he saw much more than stores selling "dress-up clothing" for western themed events. A light bulb went off.
"I realized when I flew from New York to Los Angeles, I was looking at people through the plane window who wear our products — boots and jeans, cowboy hats, everyday work wear — a true lifestyle," Conroy told Investor's Business Daily.
Spot A Bigger Opportunity
Conroy tapped this potential by boosting new retail stores.
And the strategy is working. Boot Barn hit 276 stores in 36 states as of June 21. That's up from 162 stores in 24 states since Boot Barn's IPO in October 2014. And there's room to run. The long-term goal is 500 stores, up from just 86 in 2012.
The stock price is charging higher, too. Shares are up more than 200% from their first day closing price in 2014. That gallops past the S&P 500's 60% gain in that time. Meanwhile, revenue jumped to $893.5 million in fiscal 2021 ended March 27. That's up from $169 million in the year ended March 31, 2012, the year prior to Conroy joining as Boot Barn CEO. And in 2021 the company made $100.5 million, or $2.71 a share, up from a loss of $5 million in fiscal 2012.
But it took plenty of grit and perseverance to get there.
Boot Barn CEO: Get Your Team On Board
For Conroy's first five years as Boot Barn CEO, people challenged his plan. Many felt e-commerce was the future and stores were dinosaurs. But Conroy stuck to his strategy.
It took a well-coordinated team effort, though. "All of the success has to do with putting together a solid team and building a (collaborative) culture," said Conroy. "They (the team) make the decisions on how to market and build the store base. I try to keep the team marching in the same direction."
Conroy keeps the company's people working in unison. "When you're dealing with Boot Barn, you're not just dealing with Jim Conroy, you're dealing with the whole team," William Blair analyst Dylan Carden told Investor's Business Daily.
"He (Conroy) doesn't just take the spotlight; it's about a team and giving everyone their own role," Carden said.
Lead The 'Orchestra'
The Boot Barn CEO operates as an "orchestra leader" and gets contributions from all parts of the company, Conroy says.
"My role is to make sure people are in sync with the orchestra," he said. "But I couldn't play any of the instruments. I have 17 people on my senior team and I'm not sure if I could actually do any of their jobs. But I can get them to contribute ideas and work together without any conflict or impediment."
Conroy, a 27-year retail industry veteran, developed and refined his style as his career progressed. Conroy believes leadership is much simpler than people make it out to be.
"I said this to my team nine years ago (when he became Boot Barn CEO) — listen, learn and then lead," he said.
Put Your Know-How To The Test
Conroy elevated his leadership philosophy when he joined Boot Barn.
He studied the company's inner workings that yielded successes. Conroy didn't rush to put his own stamp on the company. He built hands-on experience with customers and sales associates. Conroy even spent his first month as Boot Barn CEO working in a store, selling boots.
"I wanted to understand what was working; learn the company, its products and customers and then lead the business," said Conroy.
Learn From Your Past Lessons Like The Boot Barn CEO
Conroy's parents, who were both teachers, influenced him more than anyone "by a mile," he says. They were also athletes and coaches, too.
His parents taught him "very simple life skills set you up for success," he said. Those skills are teamwork, simplifying complexity and working hard.
Conroy also learned perseverance and "grit," he said. That was true early on as the Boot Barn CEO. Soon after Boot Barn went public in 2014, sales flatlined. Skeptics pushed the management team to stop adding stores. But the team remained "resolute," says Conroy.
Take Advantage Of Random Opportunities
Conroy landed the Boot Barn CEO job after getting a call from an executive search firm trying to fill a role at a company he had never heard of. It was an "ice cold" call that was the opportunity of a lifetime, he says.
But the job wasn't as much of a flier as it might seem. Conroy unknowingly prepared for the job for a long time.
Prior to Boot Barn, Conroy was with privately held Claire's Stores from 2007 to 2012. Conroy served as chief operating officer and interim co-CEO in 2012. Claire's, which caters to teenage girls with items like $10 earrings, seems far different from Boot Barn. Boot Barn's customer skews more male. It sells high-end products, like boots going for $200.
But his experience at Claire's helped Conroy prepare to be Boot Barn CEO. Claire's grew by adding new store locations (mostly in Europe). It had nearly 4,000 stores in 40 countries. It opened upward of 100 stores a year. Almost all the products Claire's sold were on its own private label.
Conroy saw Claire's success and deployed a similar strategy as Boot Barn CEO. "I saw a big opportunity to build more stores and broaden the exclusive products," he said.
Simplify The Strategy
Conroy and his team developed a four-part growth strategy as Boot Barn CEO.
First, add new stores. Conroy says new stores pay back quickly — in two to three years — and they're "rarely unprofitable" and return on capital can be as high as 30%.
Next, build exclusive brands. Many people doubted Boot Barn could take on well-known national brands. Conroy proved naysayers wrong. Boot Barn's percent of revenue from in-house brands surged to upward of 30%. Of the top 10 brands Boot Barn sells, four of them are its own.
Third, Conroy embraced a unique spin on online retailing. Boot Barn's e-commerce works with stores. It helps drive traffic to stores. Customers can have their online orders shipped to the local store for pickup.
Finally, power same-store sales growth. To keep stores relevant to customers, Boot Barn targets customers based on purchasing or professional profiles through marketing and merchandising. Boot Barn's stores stayed open during the pandemic because it is an "essential" retailer serving critical industries and workers.
Many other retailers in Boot Barn's space only sold western wear, not work wear. They were forced to close during the pandemic because they were not deemed essential, says Conroy.
Value Your People
Boot Barn kept its team employed and in place — even in the throes of the pandemic. That built loyalty with customers, too.
Now the Boot Barn CEO is eyeing the Northeast for expansion.
"Those stores are on track to meet or exceed our target three-year payback," the native New Yorker said. "These are markets that haven't grown up with Boot Barn and aren't sort of stereotypically cowboy country."
And Conroy isn't your typical cowboy.
Boot Barn CEO Jim Conroy's Keys
- Took helm as president and Boot Barn CEO in 2012. Turned it into the top lifestyle retail chain devoted to western and work-related footwear, apparel and accessories in the U.S.
- Overcame: The risk of growing Boot Barn by adding stores when skeptics said stores were dinosaurs.
- Lesson: "True success will come when everyone within the organization fully understands the strategy and the role that they play."
