Category: Brooks

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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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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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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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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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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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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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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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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.

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Berkshire Hathaway’s Brooks Running announced its new 2030 planet strategy, a science-backed approach that will take responsibility for the impact the brand has on the environment.

“At Brooks, we think that climate change demands urgent and universal action,” said David Kemp, Senior Manager of Corporate Responsibility at Brooks Running. “Because more than 150 million people worldwide run outside, it’s critical that we take responsibility for our impact on the planet.”

While the brand’s sustainability efforts span over a decade, this initiative will accelerate commitments, with a focus on climate action and sustainable consumption.

Brooks’ commitment to achieve net zero carbon emissions by 2040 will be achieved by first reducing emissions in line with climate science, with Brooks’ Science Based Targets to reduce carbon emissions recently validated by the Science Based Target initiative. Brooks has developed a robust climate roadmap on how they will achieve these emissions reductions with key strategies to decarbonize including converting factories to renewable electricity, converting textile yarns to low impact dyeing processes and sourcing materials with recycled content.

In partnership with ClimateCare, Brooks will purchase high-quality carbon credits from projects that avoid or reduce carbon emissions from entering the atmosphere. The portfolio of projects includes projects from the U.S., where Brooks is headquartered and a majority of product is sold, and international countries where Brooks employees are located and some of the brands product and materials are manufactured. In addition to meeting strict criteria for selecting carbon offsets projects, each of the projects provides additional environmental and social benefits – including a focus on improving air quality and advancing health and well-being.

The brand will make an immediate impact by offsetting emissions from its highest-volume style, the Ghost. The Ghost 14, launching July 1st, is Brooks’ first carbon neutral product. In addition to reducing the product’s environmental impact by incorporating recycled materials, Brooks will purchase carbon offsets from projects that meet strict criteria for making a meaningful difference in addressing climate change.

Brooks plans to reduce its usage of non-renewable resources by incorporating more sustainable materials into products while minimizing the waste associated within the manufacturing process.

In 2022, the brand will launch a take-back program, which will lay the groundwork for a fully circular shoe in the years to come. By 2023, Brooks will move to 100% recycled polyester in footwear and new apparel materials and is committed to zero footwear manufacturing waste to landfill, incineration, and the environment by 2025.

“We believe that the run can change everything: your day, your life and even the world. But to make those benefits available to all, we need to participate on a global scale,” Kemp said. “We’ve charted our program to support United Nations 2030 Sustainable Development Goals, and joined The Climate Pledge, because partnerships will be critical to achieving our ambitious goals.”

© 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.

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Berkshire Hathaway’s running shoe company, Brooks Running, ended 2020 with global revenue of nearly $850 million, an increase of 27 percent year over year.

“In 2020, the Brooks team stayed very close to the runner for cues on how to navigate the uncertainty caused by global retail and supply chain disruptions,” said Jim Weber, CEO at Brooks Running. “We quickly found new demand signals to track shifts in running participation and shopping behavior and acted decisively to engage runners and gain market share in every channel of distribution.”

While markets were interrupted with inventory disruptions from the impact of COVID-19, Brooks’ market share grew around the globe. At retail, Brooks was the No. 4 adult performance running footwear brand in the U.S. in 2020 with 8.5% dollar share, up 1.8 points year over year.

In the same period, the Brooks Ghost became the No. 1 franchise for adult performance running in the total and run specialty markets combined.

Brooks’ investment in its consumer research Run-Sight Lab and singular focus on runners was a major advantage and contributed to 2020 success. With these insights, the brand quickly adjusted its communication approach and reinforced its omni-channel distribution support to engage with runners and make sure they could find Brooks whenever and wherever they chose to research and shop.

Brooks’ Sales & Operations team created a process that included a new demand model to replace retailer signals with cues coming from digital sell-through and running participation. By the middle of the year, this customer-focused process gave the brand the confidence that demand for Brooks was exceeding previous year sales, prompting a green light to reignite production to meet demand.

Brooks gained more than 3 points of performance running dollar-share among runners in 2020 compared to 2019 and for the first time ever became the No. 2 brand among runners based on dollar-share position*. Within the final two months of 2020, Brooks was the No. 1 adult performance running footwear brand in the athletic specialty/sporting goods (ASSG) channel, generating powerful momentum leading into 2021.

In 2020, during brick-and-mortar retail closures, Brooks sales online shifted north of 75%, stabilizing at 46% by year end. With the runner in control of their shopping journey, Brooks’ multi-channel presence mattered as they moved from physical stores to online shopping.

Brooks believes its ability to deliver on its “Run Happy” promise to customers starts within its own walls; when COVID-19 hit, the health and safety of Brooks employees was the company’s top priority. Over the course of the year, Brooks invested in developing its leaders and managers to lead execution and model the brand’s core values at scale via virtual engagements and platforms.

Over the past 12 months, Brooks’ active employee count surpassed 1,000 as the company added nearly 100 employees and retained talent with zero layoffs throughout the year.

© 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.