Dive Brief:
- Riding the wave of athletic shoe demand, Brooks Running saw global revenue increase 6% year-over-year in 2022. Its direct-to-consumer business grew 16% compared to last year, the company announced on Tuesday.
- The company saw growth across geographies, with the Asia Pacific and Latin American region up 33%, and the Europe, Middle East, and Africa region increasing by 15%. Revenues in Australia and China jumped 24% and 21%, respectively.
- Citing data from The NPD Group and Retail Tracking Service, the company said it ended 2022 with 21% of the market share in U.S. adult performance running footwear. Brooks said it had a “record” fourth quarter, with 26% growth.
Dive Insight:
Brooks, which is privately held, did not disclose revenue figures for 2022 or the fourth quarter. Last year, however, the company said it ended 2021 with more than $1.11 billion in revenue. At that time, the company predicted double-digit year-over-year growth for 2022, but the company fell short of that milestone.
Nonetheless, 2022 was a year of expansion for Brooks. The company touted its e-commerce expansion into six new countries and invested in new distribution centers in the U.K. and the U.S. to prepare for higher consumer demand.
“In 2022, Brooks overcame economic and supply chain headwinds to gain new customers across all categories including running, walking, hiking, and more,” Jim Weber, CEO at Brooks Running, said in a statement. “As we head into the new year, we’re positioned for continued growth in multiple fitness and outdoor performance categories.”
Alongside Brooks, major retailers and brands in the athletics space have looked to digital as a means to grow sales. Under Armour, Nike and Adidas, among others, have shifted away from wholesale and moved to focus on direct-to-consumer channels to generate profits.
The growth Brooks and other athletic shoe brands have experienced comes as consumers’ tastes shift due to the COVID-19 pandemic and its aftermath. The NPD Group released a report this year predicting that casual styles will continue to dominate the category, as shoppers will look for shoes ideal for “casual everyday use.” Sports leisure footwear sales brought in the highest revenue last year, according to that report.