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Berkshire Hathaway’s running shoe and fitness apparel company, Brooks Running, set new records in 2021, ending the year with global revenue exceeding $1.11 billion, an increase of 31% percent year over year.
This marks the first time the running brand has reached $1 billion in annual revenue.
Brooks navigated the ongoing COVID-19 global pandemic and related supply chain disruption by reaffirming its commitment to the running community, remaining agile and transparent in servicing strong customer demand, and attracting new runners worldwide to the brand. All the while, the company continued to invest heavily in scientific research, technology, and industry-leading runner insights to deliver best-in-class performance gear.
“Brooks had a record year across every metric we track,” said Jim Weber, Brooks CEO. “Crossing the $1 billion threshold is especially gratifying as it reflects the outcome of a 20-year focus and commitment from our global team to inspire and serve runners better than any brand in run. We enter 2022 with strong demand for Brooks products in all retail channels as the only major brand exclusively anchored in performance across the run lifestyle, from sport enthusiasts to fitness seekers. I am optimistic the best is yet to come for the run community and for Brooks.”
The worldwide demand for performance running footwear continued to grow during the past year. In 2021, Brooks sold 25% more pairs of shoes globally compared to prior year.
The U.S. total running shoe market increased dollar sales by 20% in 2021, according to The NPD Group, as Americans adapted to COVID-19 realities and sought to reclaim their active lifestyles. Brooks’s commitment to reach runners where they shop is reflected in strong market share across channels in 2021. Brooks was again the leading brand in the running specialty channel, which Brooks views as an influential, community centric channel.
In the athletic specialty and sporting goods (ASSG) channel, Brooks also earned No. 1 market share in adult running shoes, with 28% dollar share in 2021 — a year-over-year increase of 4 percentage points. Across all U.S. retail channels combined, Brooks was the No. 2 ranked adult performance running footwear brand in 2021, with 19% dollar share, gaining 2 percentage points year over year, reflecting strong sales growth up 37%. Brooks produced the industry’s top two franchise styles for adult performance running footwear: the Ghost at No. 1 and the Adrenaline GTS at No. 2.
Brooks’ direct e-commerce revenue in North America grew 149% over pre-pandemic levels in 2019.
In local currency, Brooks’ EMEA (Europe, Middle East, and Africa) business grew 25% in revenue year over year. Momentum occurred across all countries and distribution channels including specialty retail, general sporting goods, and directly on BrooksRunning.eu. This pace further underscores the brand’s demand throughout the region.
© 2022 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.