Brooks Achieves Highest Quarterly Results in the Brand’s History in Q1
Brooks Running is continuing its growth in the first quarter after a record 2023.
In the first quarter of 2024, the Seattle-based performance running brand reported a 9 percent year-over-year increase in revenue. This marks the company’s highest quarterly results in the brand’s history, Brooks said in a statement.
In an interview with FN, Brooks’ new chief executive officer Dan Sheridan said that North America led Q1’s growth. “We had really healthy growth in the U.S., which saw sales grow 13 percent this quarter,” he said. “Wholesale in the region also grew double digits.”
Sheridan noted that the company’s consistent execution of its multichannel strategy could be seen in its global e-commerce business, which was up 22 percent in the first quarter compared to Q1 2023, with 38 percent year-over-year growth in March alone.
Brooks also gained momentum in key global markets this quarter. In the Asia, Pacific, and Latin America region, first-quarter revenue increased significantly in Australia and China, up 38 percent and 180 percent year-over-year, respectively. The brand’s Europe, Middle East, and Africa business continued to manage well through ongoing retail uncertainty in the region, growing e-commerce 10 percent year-over-year.
The CEO said that the company’s accelerated product innovation pipeline also helped to deliver record results in the period as inventories remained healthy and the running category experienced global growth.
“We launched six new styles into the global run market in Q1 of ’24,” Sheridan said. “And that really drove this growth, contributing to 10 percent growth in footwear sales year-over-year. And we saw it at a sell-through level and at a runner level. Our biggest launch was the Glycerin 21, which grew 39 percent year-over-year compared to Q1 2023 sales of the Glycerin 20, and is really driving sell-through with the most dedicated runners around the world. It’s been kind of a full playbook for us. We’re winning in just about every place we want to be.”
The first quarter also saw Brooks maintain the number one spot in the adult performance running footwear market at U.S. national retail for the ninth consecutive quarter and took back the top spot in the U.S. specialty footwear segment in Q1.
More broadly in the cushion category, Brooks’ product continues to excel, holding half of the top 10 spots among U.S. specialty footwear styles with the Glycerin and Glycerin GTS, Ghost and Ghost Max, and Adrenaline GTS combined accounting for 22 percent of total market share. In the U.S., Ghost unit sales increased 47 percent in the national sales channel and 98 percent among specialty retailers year over year.
Brooks also made strides in the trail running footwear category with 11 percent year-over-year revenue growth for the quarter, driven by updates to core styles including Catamount and Caldera, in addition to the launch of the Catamount Agil, a brand-new racing shoe built for distances under 50k with vertical climb.
“The strength of a brand is cumulative over time, if you invest in and nurture it, it will mature,” Sheridan said. “And what we’re seeing is a continued investment is driving great brand awareness for us that translates all the way down to the sell-through level. So that’s been the formula for us. When you do it in a go-to-market way, that is a multi-channel, that puts the runner at the center of everything you do, they’re going to find your brand.”
As for what’s to come from the Brooks in the second quarter, Sheridan noted that the brand will be focused on inviting more people into the fold. “We are using the science-based approach for creating innovation for runners as a way to invite more people into our brand,” the CEO said. “Our objectives now are to expand our addressable market, invite more people in, that need a great pair of shoes to put one foot in front of the other. And then do this globally.”
This news comes one day after Brooks unveiled its new “Let’s Run There” campaign and a refreshed brand expression. The new campaign is designed to continue its strong connection with runners and broaden the conversation with all who are active, the company said.
Brooks also officially transitioned to new leadership just last week. In March, Jim Weber, the running brand’s longtime chief executive officer, announced he was stepping down from the role after 23 years. Weber formerly passed the CEO torch to Brooks president and chief operating officer Dan Sheridan on April 26.