(BRK.A), (BRK.B)
Berkshire Hathaway’s Brooks Running, a leading performance running brand, has reported exceptional performance in the first quarter of 2024, marking a significant milestone in its history. With a remarkable 9% year-over-year increase in revenue, Brooks has achieved its highest quarterly results to date, propelled by its steadfast execution of a multichannel strategy and a robust pipeline of innovative products.
The brand’s global e-commerce segment has been a key driver of growth, surging by 22% compared to Q1 2023, with an impressive 38% year-over-year growth in March alone. This uptick underscores Brooks’ ability to meet the evolving demands of consumers in the digital space while maintaining healthy inventory levels.
In North America, Brooks has sustained its momentum with a 13% increase in sales relative to Q1 2023. Securing the No. 1 position in the adult performance running footwear market for the ninth consecutive quarter at U.S. national retail, Brooks has reaffirmed its dominance in the region. Additionally, the brand reclaimed the top spot in the U.S. specialty footwear segment during Q1, further solidifying its market position.
Brooks’ success extends beyond North America, with significant growth observed in key global markets. In the Asia-Pacific and Latin America region, revenue surged notably, with Australia and China witnessing impressive year-over-year increases of 38% and 180%, respectively. Despite ongoing retail uncertainties in Europe, the Middle East, and Africa, Brooks’ e-commerce business in the region grew by 10% year over year, showcasing resilience and adaptability.
Dan Sheridan, CEO of Brooks, attributed the brand’s success to its unwavering commitment to a “runner-first” strategy and meticulous execution on a global scale. He emphasized Brooks’ dedication to understanding and fulfilling the needs of runners and active individuals, regardless of their engagement channel, as a key differentiator for the brand.
As Brooks continues to innovate and expand its reach, its performance in Q1 2024 reflects not only financial success but also a deep connection with its customer base and a relentless pursuit of excellence in the world of running.
© 2024 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 a 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.