New Balance Posts $6.5B in Annual Sales in 2023
The Boston, Mass.-based shoe company said it hit $6.5 billion in annual sales in 2023, which marked a 23 percent increase compared to 2022. The results were driven by growth across all global markets, the company told FN in an email that included statements from New Balance chief executive officer and president Joe Preston.
“There’s never been a better time to be at New Balance as we work together to bring our collective and intentional best every day,” Preston said. “Congratulations to our entire NB team on these great results – I couldn’t be more proud!”
Outside of footwear, the company’s global apparel business crossed $1 billion in 2023, a new record. The category “remains a priority focus in 2024,” Preston said.
By region, sales grew by more than 35 percent in Europe and by more than 20 percent in the U.S.
The results overall represented a 96.6 percent growth in sales since 2020, when revenues totaled $3.3 billion for the year. Since 2020, New Balance’s sales have almost doubled across every region. The private company told FN sister publication WWD in 2018 that it was aiming for $7 billion in sales by 2023.
Among other several key moments in 2023, New Balance saw big wins when its sponsored athlete Coco Gauff won her first Grand Slam championship at the US Open. Partnerships with athletes like Kawhi Leonard and Shohei Ohtani have also driven brand heat, especially among younger consumers.
“In 2023 we continued with record investments in our digital capabilities, brand campaigns and commitment to domestic manufacturing,” Preston said, highlighting the company’s recent expansion of its Skowhegan, Maine factory and its new U.S. factory in Londonderry, New Hampshire.
Preston said in a statement that the company grew its presence across key retail accounts as well as in its own direct channels. More than half (63 percent) of customers on New Balance’s website in 2023 were new. At wholesale, top sneaker retailers consistently highlighted New Balance as a top brand in stores throughout 2023. In a call with analysts in November, Foot Locker chief executive officer Mary Dillon said that New Balance sales growth in the third quarter was well over 100 percent from the prior year, with strength across “multiple franchises performing well across men’s, women’s and kids.”
“We continue to see door expansion opportunities in New Balance as we build on the share gains we’ve seen in this exciting brand,” Dillon said at the time.
And in a call with analysts in November, president and chief brand officer of Nordstrom Inc. Pete Nordstrom said that New Balance was one of the key brands that drove active sales growth in footwear in the quarter.
In 2024, New Balance plans to open 90 new stores across the globe and carry out 50 store remodels with a new design model centered on community.
“As we move forward, we will stay true to who we are as we connect sport and culture and drive our product innovation and brand investments,” Preston said. “We will continue to build best-in-class global operations and leverage our independent and entrepreneurial spirit towards another strong year.”