Brooks Running Achieves All-Time High Revenue in 2023, Expedites Innovation in the Coming Year

Brooks Running concluded 2023 with an unprecedented surge in revenue, marking a growth of $1.2 billion, a 5% increase compared to the previous year, and a remarkable sales volume exceeding 20 million units. The company’s compound annual growth rate has consistently exceeded 14% since 2018. Notably, the North American market witnessed a 7% year-over-year revenue boost, propelling Brooks to surpass $1 billion in regional revenue for the first time. The success was attributed to Brooks’ strategic multichannel approach, inventory optimization, targeted market investments, and the introduction of high-performance products worldwide.

Throughout 2023, Brooks maintained its dominance in the U.S. adult performance running footwear market, securing a 21% market share for the year and holding the top spot in sales quarter after quarter. The Brooks Ghost and Adrenaline GTS shoes continued to lead as the top two adult performance running styles at U.S. retail, commanding a combined share of over 12%. Additionally, the Brooks Ghost gained recognition on the Strava fitness tracking app’s yearly global trend report.

Jim Weber, Brooks CEO, expressed enthusiasm about the brand’s position, emphasizing the thriving state of the running industry and the increasing global interest in physical, mental, and social well-being through activities like running. Weber stated that Brooks is well-positioned for success in the upcoming year, anticipating growth among runners, walkers, hikers, and other enthusiasts.

Capitalizing on the flourishing performance running category, Brooks strategically invested in product innovation. The premium adult performance running footwear category experienced a 15% year-over-year growth in the U.S., with running shoes outperforming the overall footwear market. The introduction of the Ghost Max in September 2023, featuring high-stack cushioning and GlideRoll rocker technology, contributed significantly to Brooks’ success, becoming the brand’s most successful new style with over half a million pairs sold in the first three months.

Heading into 2024 with strong momentum, Brooks plans to continue expanding its product offerings, with over 10 new launches and updates across core footwear categories such as cushion, speed, and trail. The Ghost Max’s success played a crucial role in Brooks gaining a 2-3% footwear retail market share from September to November 2023.

Brooks’ global success was evident, with growth across regions driven by its effective multichannel strategy. The company achieved milestones in key international markets, including impressive year-over-year growth in Germany and France. Following a successful direct-to-consumer (DTC) venture in China, where sales increased by 194%, Brooks plans to open retail stores in 2024 to further engage with the Chinese market.

Brooks’ DTC e-commerce channels experienced a 24% global revenue growth year over year, with record-breaking sales during the Thanksgiving through Cyber Monday period, up 22% in North America compared to 2022. The digital Brooks Run Club loyalty program expanded to over 500,000 members by year-end, representing an 85% year-over-year increase, driven by exclusive promotions and reward games.

Dan Sheridan, President and COO at Brooks, highlighted the brand’s resilience in navigating challenges, such as supply chain disruptions in 2022 and economic uncertainty in Europe. Sheridan emphasized the company’s commitment to executing its strategy and making key investments to support its business, customers, and the global running community.

Brooks continued to invest in elite athletes and the broader running community in 2023. The brand celebrated victories with its roster of professional athletes, including gold medals and outstanding performances. Looking ahead to 2024, Brooks plans to introduce innovative products, including the Catamount Agil, its most advanced trail racing product to date, as well as the Hyperion Elite 4 and Hyperion Elite Middle- and Long-Distance spikes.

In 2023, Brooks increased its investment in the running industry through sustainability initiatives, community activations, and collaborations. The Future Run program, launched in spring, impacted 245,000 youth runners by supporting youth running programs, high school running teams, and coaches. As an inaugural member of the Running Industry Diversity Coalition’s RUN THE BLOCK mentoring and grant initiative, Brooks provided $200,000 in initial seed funding to support BIPOC-owned running stores and entrepreneurship. Additionally, Brooks launched ReStart, offering gently used and refurbished shoes at a reduced price to help extend the life of Brooks gear.

Source Link