Dive Brief:
- Brooks Running’s second-quarter global revenue jumped 19% year over year, the activewear brand announced Wednesday. The privately held company did not share precise sales figures.
- In the U.S., its performance running footwear market rose 9% year over year, driven by a 16% increase in premium footwear sales. Customers in the U.S. and Canada drove a 13% increase in North American sales compared to last year, per the press release.
- The company introduced eight footwear styles in the second quarter, which resulted in a 28% surge in unit growth in new footwear styles, the release said.
Dive Insight:
While Brooks Running is privately held, its sales results indicate the brand is continuing to perform well despite larger economic uncertainty.
A year ago, the activewear brand reported a 15% increase in revenue, a “record” for the company at that time. This year, its Q2 revenue “set an all-time quarterly high” for the second consecutive quarter, per its Wednesday press release.
In its latest earnings announcement, Brooks Running highlighted the success of its Disney partnership. The collaboration led to a collection of Disney-themed performance running shoes during the runDisney Springtime Surprise Weekend in April. The first batch of Disney-themed footwear sold out in 12 hours on the brand’s website, and a second batch “generated records for hourly e-commerce revenue” for the company, per the press release.
“Brooks continues to execute at a very high level, delivering outstanding value to our customers while adapting to a dynamic business environment,” Dan Sheridan, Brooks Running CEO, said in a statement. “Our innovative product pipeline, the strength of our global business model, and our authentic touchpoints with consumers are a testament to our team’s customer-first approach.”
Brooks’ financial announcement comes at a volatile time for the footwear industry. In April, the Footwear Distributors and Retailers of America sent a letter to President Donald Trump to consider tariff exemptions on shoe imports. Meanwhile, in Adidas’ second-quarter earnings release, the company said it expects the U.S. tariffs to drive a 200-million-euro (roughly $230 million) impact on its product costs.
U.S. department stores, apparel and footwear retailers will likely be hit the hardest by the U.S. tariffs, Moody’s Ratings said in a report released last month. The ratings agency predicts that revenues will rise 3% at most.
Shoppers have already begun pulling back their spending on footwear, research suggests. Under a third of U.S. consumers said they foresee spending less on work shoes (29%) and dress shoes (26%) this spring and summer, according to an AlixPartners survey from May. Spending on athleisure shoes is expected to decline by 17%, the report said.
