SEATTLE--(BUSINESS WIRE)--Brooks Running finished 2023 with record revenue growth of $1.2 billion, up 5% year over year, and a record 20 million+ units sold. Since 2018, Brooks’ compound annual growth rate exceeded 14%. In North America, revenue increased 7% year over year as the brand reached $1 billion in revenue in the region for the first time. Brooks executed its multichannel business strategy as it right-sized inventory, invested in key markets, and delivered premium performance products across regions to drive the brand’s success in 2023.
Brooks maintained the No. 1 spot in the adult performance running footwear market at U.S. retail from quarter to quarter in 2023 with 21% market share for the year.1 The Brooks Ghost and the Adrenaline GTS shoes also remained the top two adult performance running styles at U.S. retail, commanding more than 12% share combined in 2023.2 Additionally, the Brooks Ghost was among the top running styles on the fitness tracking app Strava, according to its yearly global trend report. As well, in Runner’s World’s “The Fast Lane” custom audience study released in November, Brooks ranked No. 1 in both current owners of Brooks running shoes as well as prospective buyers.3
“There has never been a more exciting time to be in run, especially for a brand as focused on it as Brooks. U.S. retail is healthy across channels and participation continues to grow worldwide as more people discover the physical, mental, and social benefits of putting one foot in front of the other,” said Jim Weber, Brooks CEO. “Brooks is poised to compete at its best this year as we welcome additional runners, walkers, hikers, and more to experience our products and brand.”
Brooks capitalizes on brightest spot in footwear with continued investment in product innovation
The performance running category remained strong in 2023 as one of the few footwear categories to see growth in the U.S., with running shoes outperforming the overall footwear market.4 The premium adult performance running footwear category ($75+) grew 15% year over year in the U.S., driven in part by continued growth in participation.
Brooks entered 2024 with strong fourth-quarter momentum, including 24% global revenue growth in December. In September, Brooks launched the all-new Ghost Max, expanding on the brand’s highly successful Ghost franchise by adding high-stack cushioning and GlideRoll rocker technology to offer more protection and assisted transition through the gait cycle. The Ghost Max represented the best retail adoption of a new style in Brooks’ history, selling more than half a million pairs in the first three months and contributing to the brand’s 2-3% footwear retail market share gain from September to November.5 In Q4, the Ghost Max took the 6th spot overall in top U.S. specialty footwear styles.6
This year the brand will build on demand with a steady pipeline of product launches and innovations across all core footwear offerings for the first time since 2020, including more than 10 new launches and updates to favorite franchises within cushion, speed, and trail. Brooks will leverage new styles, fits, support options, and colorways as it expands brand engagement to reach more runners, fitness enthusiasts, and walkers seeking performance product.
Global business reaches new heights driven by strong multichannel execution
Brooks saw growth across regions through its multichannel strategy with effective demand creation, leading to continued success in the U.S. and reaching new milestones in key international markets. U.S. revenue in wholesale footwear grew 5%, including 11% in the specialty category. In Europe, Brooks’ year-over-year growth outpaced adult performance running footwear retail sales in regional markets; in Q4 Brooks’ sales grew 14% in Germany, while the brand’s sales in France grew 15% for the year.7 Following Brooks’ direct-to-consumer (DTC) success in China last year, up 194%, the company plans to open retail stores in 2024 to further engage runners in that market.
Brooks DTC e-commerce channels grew 24% in global revenue year over year, including record-breaking sales from Thanksgiving through Cyber Monday, up 22% in North America versus 2022. Brooks grew its digital Brooks Run Club loyalty program to more than 500,000 members by year-end, up 85% year over year, through exclusive promotions and reward games.
“Our multichannel operational execution and runner-first approach helped us navigate headwinds created by supply chain disruptions in 2022 as well as economic uncertainty in Europe,” said Dan Sheridan, President and COO at Brooks. “We’re energized by our opportunity to further execute our strategy and double down on key investments to support our business, customers, and the global running community.”
Brooks increases support for elite athletes and investments in the broader run community
Brooks’ investment in the sport drove new wins for the brand and its roster of professional athletes in 2023. Brooks Beasts Track Club middle-distance athlete Josh Kerr won the gold medal in the men’s 1500m at the 2023 World Athletics Championships in Budapest in August, followed by another victory at the 5th Avenue Mile race in New York City. Beast teammates Nia Akins and Isaiah Harris clocked outstanding performances in the 800m during their 2023 season, including a U.S. national title for Akins and a top-three finish for Harris. In Q1, the brand will introduce its most innovative trail racing product to date, the Catamount Agil, in addition to the Hyperion Elite 4 and Hyperion Elite Middle- and Long-Distance spikes launching the following quarter.
In 2023, Brooks also increased investment in growing the running industry through sustainability initiatives, community activations, and collaborations with key partners. Following its spring launch, Brooks’ Future Run program impacted 245,000 youth runners through support of youth running programs, high school running teams, and coaches. In November, Brooks became an inaugural member of the Running Industry Diversity Coalition’s new RUN THE BLOCK mentoring and grant initiative, and provided $200,000 in initial seed funding intended to foster BIPOC-owned running stores and entrepreneurship. Brooks also launched ReStart, which helps Brooks gear stay on the run as long as possible by offering runners gently used and refurbished shoes at a reduced price.
About Brooks Running
Brooks Running creates market-leading performance running footwear, apparel, sports bras, and accessories distributed worldwide. Brooks’ purpose is to inspire everyone to run and be active by creating the best gear, tools, and experiences. Founded in 1914, the company continues to deliver accelerated product innovation and engagement with runners, walkers, and everyone who is active. Brooks is a subsidiary of Berkshire Hathaway Inc. and is headquartered in Seattle, Washington. Visit www.brooksrunning.com for more information or follow @brooksrunning.
1 Source: Circana/Retail Tracking Service, U.S. dollar sales, 2023
2 Source: Circana/Retail Tracking Service, U.S. dollar sales, 2023
3 Runner’s World “The Fast Lane” 2023 Custom Audience Study: both percentage of survey respondents who currently own a pair of Brooks and those who will consider Brooks during their next purchase of running shoes.
4 Circana, Retail Tracking Service, dollar sales, 2023
5 Upper Quadrant Specialty Run Market Data
6 Upper Quadrant Specialty Run Market Data
7 Source: Circana, Retail Tracking Service, dollar sales, 2023