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Brooks

Berkshire’s Brooks Running Achieved Record-Breaking Success in 2023

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In the dynamic world of performance running footwear, Brooks Running, a subsidiary of Berkshire Hathaway, emerged as a frontrunner in 2023, achieving remarkable milestones and solidifying its position as a leader in the industry. The company reported a record revenue growth of $1.2 billion, marking a significant 5% increase year over year. Moreover, Brooks witnessed a historic achievement of selling over 20 million units, showcasing its widespread consumer appeal and market penetration.

Since 2018, Brooks has consistently demonstrated impressive growth, boasting a compound annual growth rate surpassing 14%. This growth trajectory continued in 2023, particularly in North America, where revenue surged by 7%, surpassing the $1 billion mark for the first time in the region’s history. This achievement underscored Brooks’ effective multichannel business strategy, which included inventory optimization, strategic investments in key markets, and the delivery of premium performance products across various regions.

The success story of Brooks extends beyond financial metrics, as evidenced by its dominant presence in the adult performance running footwear market. The brand maintained its coveted position as the top player in the U.S. retail market, capturing a remarkable 21% market share throughout the year. Key products such as the Brooks Ghost and Adrenaline GTS shoes emerged as the top two adult performance running styles, commanding over 12% share collectively. Additionally, the Brooks Ghost garnered recognition in the fitness tracking realm, being among the top running styles on the popular app Strava.

Jim Weber, CEO of Brooks, expressed enthusiasm about the brand’s prospects, stating, “There has never been a more exciting time to be in run, especially for a brand as focused on it as Brooks.” He highlighted the thriving landscape of the U.S. retail market and the global increase in participation, emphasizing Brooks’ readiness to cater to a diverse audience seeking the physical, mental, and social benefits of running.

Brooks’ commitment to innovation remained unwavering in 2023, with a particular focus on product development. The performance running category experienced robust growth, outperforming the overall footwear market in the U.S. Brooks seized this opportunity by introducing the all-new Ghost Max, a groundbreaking addition to its Ghost franchise. The Ghost Max garnered unprecedented retail adoption, contributing to Brooks’ notable market share gain in the footwear segment.

For 2024, Brooks aims to build on its momentum with a robust pipeline of product launches and innovations across core footwear offerings. The brand’s strategic expansion efforts will focus on enhancing brand engagement and reaching a broader audience of runners, fitness enthusiasts, and walkers seeking high-performance products.

Brooks’ global success story extends beyond North America, with significant growth witnessed across regions through its multichannel strategy. Europe emerged as a promising market, with notable sales growth in key countries like Germany and France. In addition, Brooks’ direct-to-consumer channels experienced substantial revenue growth, reflecting the brand’s ability to engage consumers through digital platforms and loyalty programs.

Dan Sheridan, President and COO at Brooks, emphasized the company’s resilience in navigating challenges such as supply chain disruptions and economic uncertainties. He expressed confidence in Brooks’ strategic direction and reiterated the brand’s commitment to supporting its customers and the global running community.

In 2023, Brooks also reaffirmed its dedication to elite athletes and the broader running community through increased investments in sustainability initiatives, community activations, and collaborations with key partners. The brand’s Future Run program, aimed at supporting youth running programs and promoting diversity in the industry, impacted thousands of young runners, underscoring Brooks’ commitment to driving positive change within the running community.

As Brooks Running continues to set new benchmarks in the performance running footwear market, the brand’s unwavering dedication to innovation, customer engagement, and community impact positions it as a formidable player in the global athletic footwear industry.

© 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.

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Brooks

Berkshire Hathaway’s Brooks Running Thrives in Competitive Market, Anticipates Double-Digit Growth in 2024

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Berkshire Hathaway’s Brooks Running has experienced remarkable success in 2023, with a 5% increase in global revenue and a 7% rise in North American revenue year-to-date.

The company’s achievements can be attributed to various factors, including its expansion into new markets, recovery from supply chain disruptions caused by the COVID-19 pandemic, and the normalization of inventory levels amidst economic challenges. Furthermore, the return of Brooks’ full product line and innovation pipeline, along with the exceptional launch of the Ghost Max shoe in late September, have been instrumental in driving the brand’s growth and instilling confidence in its ability to achieve double-digit growth in 2024.

Leading the Market

Brooks Running has continued to dominate the adult performance running footwear market in the United States. For the seventh consecutive quarter, the brand has held the number one spot with a 21.4% market share. According to the Running USA 2023 Global Running Survey, released recently, Brooks was also identified as the most preferred brand for training and racing footwear by event participants.

Jim Weber, CEO of Brooks Running, expressed his satisfaction with the brand’s success, saying, “Brooks is winning with runners in an incredibly competitive marketplace. They are more discerning than ever and need their gear to deliver mile after mile. At the same time, we’re extending our reach to active people walking, hiking, or in the gym – because everyone can benefit from the fit, comfort, and performance Brooks’ products provide.”

Innovative Product Lineup

A key driver of Brooks’ momentum has been the introduction of new products into the market. Notably, the launch of the Ghost Max in late September marked a significant expansion of the highly successful Ghost franchise. This new shoe incorporates high-stack cushioning and GlideRoll rocker technology, providing enhanced protection and assisted transitions through the gait cycle. Ghost Max has achieved unprecedented retail adoption and contributed to Brooks’ dominance in the running footwear market. With the introduction of Ghost Max, Brooks now boasts five of the top 10 selling running footwear franchises in the U.S. specialty run channel.

Looking ahead to 2024, Brooks plans to introduce the Glycerin 21, the next generation of the fan-favorite Glycerin franchise, featuring additional DNA LOFT v3 cushioning. In addition, Brooks will launch the athlete-tested Hyperion Elite 4 distance racing shoe ahead of the 2024 U.S. Olympic Marathon Team Trials in February. The brand has also announced the Exhilarate-BL featuring Brooks’ cutting-edge 3D-printed 3DNA midsole technology, available to members of the Brooks Run Club in early 2024.

Omnichannel Growth and International Expansion

Brooks has not only excelled in the United States but also achieved significant growth in international markets. The company’s direct-to-consumer business saw a 25% increase in e-commerce sales in the U.S., while international revenue increased by 22% in France and the United Kingdom, combined, year to date. In addition, Brooks has made notable gains in the Chinese market, a testament to its ongoing regional and omnichannel growth efforts.

To engage with the community and promote its products, Brooks launched a pop-up store in Los Angeles in August. The store offered a dynamic shopping experience and hosted weekly community and fitness programming. Furthermore, Brooks has expanded its distribution capabilities by tripling its distribution facility footprint in the U.S. and U.K., enabling the company to meet the increasing demand across various sales channels.

Supporting Athletes and Global Running Community

Brooks remains committed to supporting athletes on the world stage. The brand’s track and middle-distance athlete, Josh Kerr, achieved a gold medal in the men’s 1500m at the World Athletics Championships in Budapest, and Des Linden secured the American Masters Record at the Chicago Marathon. Additionally, Brooks has expanded its roster of elite athletes by sponsoring marathoner Susanna Sullivan and signing 800m runner Brandon Miller to its Beasts middle-distance team. The brand has also formed an NIL (Name, Image, Likeness) deal with University of Arkansas freshman Shawnti Jackson, who holds the title of the fastest American high school female of all time.

Brooks has also fostered strong relationships within the digital run communities by collaborating with fitness apps such as Strava and Joyrun. Brooks became the first title sponsor of Strava’s Global 5K Monthly Challenge, attracting 3.1 million participants and growing its Brooks Run Club on Strava by 71.6%. The partnership with Joyrun, boasting 128 million users, extends Brooks’ reach and audience engagement throughout China.

Conclusion

As 2023 draws to a close, Brooks Running has demonstrated its resilience and innovation in the competitive athletic footwear industry. With a strong lineup of products, impressive market share, and expanding international presence, the brand is well-positioned for continued success in 2024 and beyond. Brooks’ dedication to athletes, the running community, and its customers has solidified its reputation as a leader in the global running industry.

© 2023 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.

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Brooks

Brooks Running Launches ReStart Recommerce Program

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Brooks Running, a subsidiary of Berkshire Hathaway, has unveiled a new initiative known as ReStart, a recommerce program aimed at reviving and reselling gently used Brooks footwear in the United States. This strategic move not only keeps functional gear in circulation but also allows the brand to tap into the burgeoning recommerce market.

With sustainability at the core of its ethos, Brooks has been steadfast in its commitment to safeguarding the environment upon which we run. The introduction of ReStart represents a significant stride towards achieving these goals by prolonging the lifespan of gently used Brooks gear and generating revenue to fund future sustainability endeavors.

Dave Kemp, Director of Corporate Responsibility at Brooks, emphasized the importance of recommerce, stating, “Recommerce allows us to keep gear on the run while supporting our aim to take responsibility for the impact of our business. The launch of ReStart is an important step in the brand’s long-term, science-backed approach to sustainability.”

The global resale industry currently stands at a staggering $100 billion, growing at a rate five times faster than traditional retail. Experts project that by 2030, recommerce will account for a remarkable 23% of all retail transactions. In line with this market trend, the ReStart program will offer three different condition categories: Like New, Great, and Good. These categories will cover a wide range of Brooks footwear styles, including beloved favorites like the Ghost and Glycerin, as well as speed-oriented products like the Hyperion franchise. Prices for these refurbished items start at an enticing 35% off the manufacturer’s suggested retail price (MSRP).

To power the ReStart program and ensure a seamless shopping experience for consumers, Brooks has teamed up with Trove, a trailblazer in the field of branded resale for over a decade. Trove serves as the recommerce partner for leading brands worldwide, enabling them to reach new customers while also fostering accessibility and choice within their existing communities. By leveraging its proprietary Recommerce Operating System, Trove is spearheading the transition toward more lucrative and sustainable business models. Through their partnership, Trove processes over one million items annually for brand partners, prolonging the life of countless products and preventing greenhouse gas emissions. In fact, between 2016 and 2022, Trove-powered resale and trade-in programs helped avoid a
staggering three million kilograms of greenhouse gas emissions.

Brooks Running’s entry into the recommerce market with the launch of ReStart highlights their dedication to sustainability. By embracing the recommerce model, the company not only ensures that high-quality gear remains in circulation but also solidifies its position as a leading force in the pursuit of environmentally responsible business practices.

As a company, Brooks has shown strong momentum in 2023 in the U.S. specialty run channel, with a year-over-year revenue increase of 42% in the first quarter. The direct e-commerce sales for Brooks grew by an impressive 33% year over year in Q1.

© 2023 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.

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Brooks

Brooks Running Q1 Revenue Growth Up 20%

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Berkshire Hathaway’s Brooks Running is continuing its success from 2022 into the first quarter of 2023 with an impressive 20% year-over-year global revenue growth, highlighted by a record 32% increase in the Europe, Middle East, and Africa (EMEA) region.

Despite pandemic-related supply chain and inventory issues, Brooks overcame these challenges and brought innovation to the market through new products and experiences. The brand demand was strong across all retail channels. Brooks maintained its position as the top brand at U.S. retail in adult performance running footwear, with a market share of 23%. The Ghost and Adrenaline GTS were the two franchise lines that had the highest sales, with a combined share of over 13% in adult performance run.

Brooks also showed strong momentum in the U.S. specialty run channel, with a year-over-year revenue increase of 42% in the first quarter. The direct e-commerce sales for Brooks grew by an impressive 33% year over year in Q1.

Jim Weber, the CEO, expressed optimism about the future of the premium running category, even in the face of global consumer market uncertainty. “Every runner and walker deserves performance product,” Weber said. “With participation rates healthy and the demand for quality, premium product as strong as ever, Brooks is executing uniquely and earning the trust of retailers and runners.”

Overall, Brooks Running is continuing to thrive in the performance running industry, with strong brand demand, innovative products, and a loyal customer base.

© 2023 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.

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Brooks

Empowering Young Runners: Brooks Running’s Future Run Initiative

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Berkshire Hathaway’s Brooks Running has launched Future Run, a $10 million initiative aimed at helping young people discover the lifelong benefits of running and its community.

The program aims to reach 1 million young runners in the US over the next five years.

Inactivity among kids is rising, and schools are reducing or eliminating funding for physical education and activities. Screen usage among youth is up 50%, and more young people are reporting poor mental health.

The Future Run initiative seeks to help clear participation obstacles for young runners nationwide and particularly those in underrepresented communities.

The brand has partnered with Marathon Kids, which provides evidence-based physical activity programming to help kids adopt an active lifestyle and learn how being active can improve their entire well-being.

Through Future Run, Brooks will also invest in regional partners such as Angel City Elite in Los Angeles, Students Run Philly Style in Philadelphia, Kids of Steel in Pittsburgh, and We Run Houston in Houston. These organizations connect participants to running opportunities, coaching, and mentors in their own backyards.

© 2023 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.

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Brooks

Brooks Running Achieves Record Revenue in 2022

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Berkshire Hathaway’s Brooks Running crossed the finish line in 2022 with record global revenue, up 6% over 2021 with growth in all regions, and direct-to-consumer sales up 16%.

The brand navigated supply chain obstacles during the first half of the year, returning to complete inventories in the back half with a record fourth quarter, up 26% year over year.

In January 2022, Brooks became the top brand at U.S. retail in adult performance running footwear, maintaining that position through the year to finish with 21% market share.

For 2022, Brooks again held the No. 1 and No. 2 spots in adult performance footwear styles sold at U.S. retail with the Ghost and Adrenaline GTS respectively, contributing to the running brand’s strong momentum heading into 2023.

Brooks competed for customers across run categories in 2022 with innovative products and key initiatives in cushion, speed, trail, and walking. Notably, the launch of the new Glycerin 20 Super Franchise with a nitrogen-infused midsole offers runners more choice in fit and support, with the addition of the GTS stability system and a new StealthFit option alongside Brooks’ classic fit.

“In 2022, Brooks overcame economic and supply chain headwinds to gain new customers across all categories including running, walking, hiking, and more,” said Jim Weber, CEO at Brooks Running. “As we head into the new year, we’re positioned for continued growth in multiple fitness and outdoor performance categories.”

Expanding global reach and capacity

In 2022, Brooks focused on opportunities to engage runners and better service customers in key markets around the globe. During the year, Brooks launched e-commerce sites in six additional countries and invested in new distribution centers in the U.S. and U.K. to address increasing demand and scale for growth.

In the Europe, Middle East, and Africa region, Brooks grew revenue 15% in local currency year over year. The Asia Pacific and Latin America region grew 33%, with Australia and China up 24% and 21% respectively, driven by wholesale success and a digital-first approach.

Running retailers around the world recognized Brooks for its brand strength and best-in-class service. Brooks was recently named as the top running brand in Canada by independent running retailers in 4 of 5 categories when surveyed by the IRRC (Independent Running Retailers of Canada).

German publication SAZ, a trade publication that tracks retailer sentiment, recognized Brooks as running brand of the year for the sixth year in a row.

In the U.S., Brooks ranked No. 1 overall in Brand Rating and Ranking in this year’s Running Dealer Report issued by the Running Industry Association (RIA).

Connecting with runners and fostering growth in community

Brooks made investments in the running community in 2022 through new initiatives, including the August launch of the “It’s Your Run” global brand campaign, which celebrates runners of all types on their journeys to achieving their best runs. Coinciding with the campaign, the brand grew 2 points of unit share at U.S. retail for adult performance running footwear from August to December 2022, year over year.

The brand’s loyalty program, Brooks Run Club, hit nearly a quarter million memberships last year as the community expanded from digital events to include physical activations across the U.S.

Brooks also organized events at marquee trail and road races this year, including Ultra-Trail du Mont Blanc (UTMB) in Chamonix, France, and the Boston and New York City Marathons. Brooks-sponsored athletes blazed new trails, with CJ Albertson setting the world record in the 50k at 2:38:43 and Josh Kerr clocking 3:48:87 to break the British and European indoor mile records at the Boston University Last Chance Meet.

Last year’s Sasquatch by Louie Gong (Nooksack) collection and Run Proud collaboration with LGBTQ+ artist Lisa Congdon celebrated diverse identities within running and supported Brooks’ goal to champion the run for all.

Brooks also extended its existing relationship with free community event group parkrun, becoming parkrun’s exclusive global footwear partner and the presenting partner in the U.S., Germany, and the Netherlands through 2028, supporting the organization’s growing community that currently includes eight million registered participants in more than 20 countries.

Poised for success in the new year

As Brooks looks ahead to 2023, the brand will continue to meet the evolving needs of runners through product innovation and advancements in nitrogen-infused midsoles and assisted transitions, including its Glideroll rocker. Market trends project growth in running and walking participation, and Brooks will deliver new speed, trail, and cushion products to meet that demand. Brooks will also take further steps down its People and Planet path by deepening investments in youth running and developing elite athletes. Brooks will also launch additional carbon neutral products and a new Green Silence shoe that will showcase advancements in sustainability.

“The future has never been brighter for performance running,” added Weber. “We look forward to introducing more runners to Brooks this year, giving them the premium fit, performance, and experience they desire from their gear while connecting uniquely through our Run Happy spirit.”

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.

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Brooks

Brooks Running Achieves Double-Digit Growth in Q2

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Berkshire Hathaway’s running shoe and fitness apparel company, Brooks Running, for the second consecutive quarter holds the top spot in the U.S. adult performance running footwear market with 21% market share based on revenue, and continued its momentum with record global revenue, up 11% compared to the second quarter of 2021.

In the face of ongoing economic and supply chain stressors, Brooks began to meet strong demand in May, keeping the company on track for projected double-digit revenue growth in 2022.

Brooks captured five of the top 25 adult performance running footwear shoes at U.S. retail in the first half of 2022: the Ghost 14, Adrenaline GTS 22, Adrenaline GTS 21, Revel 5, and Glycerin 19. The Ghost and Adrenaline maintained their positions as the top two selling franchise lines in the U.S. market, with a combined 14% of sales revenue.

“We’ve seen great excitement over our revolutionary nitrogen-infusion technology and the launch of our Glycerin 20 franchise, and we look forward to bringing the carbon neutral Ghost 15 to runners this November,” said CEO Jim Weber. “By spreading the run and its energy to an even greater number of individuals across the globe, Brooks has captured double-digit growth with more to come in the second half of this year.”

The running market around the world continues to normalize after the COVID-19 pandemic’s disruptive impact on consumer behavior, retail markets, and the supply chain. While the running footwear market in the U.S. was down 10% in Q2 versus last year, Brooks’ long-term growth outlook remains positive as global participation is expected to grow coming out of the pandemic and outpace historical trends.

Manufacturing recovery allowed Brooks to fully meet demand beginning in May and launch the highly anticipated Glycerin 20 franchise in June, both key factors in achieving 12% revenue growth in the U.S. and 38% revenue growth in the Europe, Middle East, and Africa regions in the second quarter. Brooks also began a soft launch into the China market in Q2, focusing on digital sales. With over 20 million people in China running, the country represents a large market for premium running footwear, with over $1.5 billion in sales and 13 million pairs sold annually.

Brooks gains insight through human and science-based research to deliver products for any type of runner. Brooks launched its latest footwear innovation in engineered midsole technology with the nitrogen-infused DNA LOFT v3. This technology allows Brooks to control cell structures and density in its midsoles, fine-tuning the underfoot experience of each style to meet the different needs, preferences, and environments of runners.

Developed through the brands’ BlueLine Lab, this nitrogen-infused technology provides more cushioning in the midsole without sacrificing weight. Road runners and trail runners can reap the benefits when wearing the Glycerin 20 franchise or Caldera 6 shoes. Brooks will continue to invest in technology to bring innovation into more products that deliver the performance gear that every runner deserves.

Brooks was back to in-person running events this past quarter, engaging runners in the community and representing the brand at the highest levels of the sport. Four Brooks athletes competed at the World Athletics Championships, and the brand gathered the nation’s top high school runners to compete in the Brooks PR Invitational and attempt a personal record (PR). Now in its 10th year, the event saw the fastest U.S. time recorded in the girls’ 400m in 2022 and a record in the boys’ mile.

This August, Brooks launched a global brand campaign, “It’s Your Run.” The campaign is a celebration of the creative ways all types of runners get to their personal finish lines. Built on the insight that running can be hard for even for the most committed runners, the campaign focuses on the creative ways that runners achieve their best run.

© 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.

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Brooks

Double-Digit Growth Vaults Brooks Running Into Top Spot in U.S. National Performance Footwear Market

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Berkshire Hathaway’s running shoe and fitness apparel company, Brooks Running, is on track for double-digit year-over-year growth in 2022.

After ending 2021 with over $1.11 billion in global revenue, in Q1 2022, Brooks took the top spot in the U.S. National performance footwear market for the first time, with 22% market share, based on revenue. Its Brooks Ghost and Brooks Adrenaline were the top two selling franchise lines in the adult performance running market, collectively accounting for 14% of U.S. sales.

“While Vietnam factory closures last year caused us to fall short of fulfilling strong market demand for Brooks in Q1, we remain bullish for substantial growth in 2022,” said Brooks CEO Jim Weber. “Brooks’ performance products continued to lead with runners and the best is yet to come as our new Glycerin styles come to market featuring DNA LOFT v3, a nitrogen-infused midsole compound that delivers an incredibly compelling running experience.”

The 2022 Sports & Fitness Industry (SFIA) Manufacturers Sales Report, found that total U.S. run industry growth—including equipment, apparel, and footwear—grew 15.8% in 2021.

© 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.

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Brooks

Brooks Posts Record Growth, Surpasses $1 Billion in Revenue

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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.

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Brooks

Brooks Year-to-Date Revenue Up 44 Percent

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Berkshire Hathaway’s running shoe and fitness apparel company Brooks’ revenue increased for an eighth consecutive quarter in Q3 2021.

From January through September 2021, Brooks grew revenue 43.5 percent globally.

In the U.S. adult performance running footwear category, Brooks captured 19% market share, based on revenues, and gained 2 percentage points, versus last year, according to The NPD Group Retail Tracking data.

Contributing to this result was third quarter revenue growth of 24 percent year over year as the company continued to feed strong consumer demand around the world. Brooks’ leading footwear franchise styles led the gains as revenue from the Adrenaline GTS, Ghost, and Glycerin super franchise are up 50 percent versus 2020.

“More than twenty years ago, we made a big bet that if we put the runner at the center of everything we do—delivering the product they need and then celebrating the many reasons they run and the positive energy they get from it—we could become a leading brand in run,” said Jim Weber, CEO at Brooks. “We look forward to welcoming more people into the running community as we close out 2021 and enter the new year.”

Brooks’ growth is benefitting from distinctive products, a premium brand positioning, strong multi-channel distribution, digital engagement, and a tailwind of increased participation in running and walking around the world.

Brooks entered the third quarter with strong brand demand amid ongoing pandemic-related quarantines and mandated factory shutdowns coupled with widespread supply chain disruptions. These headwinds began to affect Brooks’ ability to meet consumer demand for the quarter, reducing revenue in September. While supply chain challenges are not unique to Brooks, the brand expects impacts to continue through Q2 2022 and is well positioned to manage through the disruption with strong partnerships in its geographically diverse yet categorically focused supply chain ecosystem.

© 2021 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.