Brooks Running achieved record revenue growth by deeply understanding and catering to the evolving motivations of modern runners, particularly Gen Z. Their focus on the social and mental aspects of running, amplified through the "run club boom," allowed them to connect with consumers beyond just product features and drive international expansion in high-growth markets like China.
Key takeaways
Identify and target emerging cultural shifts in consumer behavior (e.g., Gen Z's focus on social and mental well-being in fitness) to unlock new growth opportunities.
Leverage community-building initiatives like run clubs to foster deeper brand engagement and cultivate a loyal customer base, even over traditional marketing channels.
Prioritize international market expansion, particularly in regions with rapidly growing middle classes and increasing participation in relevant consumer activities, to diversify revenue streams. Brooks saw 228% growth in China by understanding exploding participation rates.
Proactively manage supply chain risks by diversifying manufacturing locations to mitigate the impact of potential tariffs and trade disputes. Brooks shifted production primarily to Vietnam and Indonesia to avoid China tariffs.
Sustain consistent growth by maintaining a sharp, long-term focus on your core category while adapting to new consumer motivations. Brooks maintained 15% compounded growth over 25 years by focusing solely on running.
Expand into high growth channels like opening physical stores in key international markets, Brooks is opening 10 more stores in China this year.
It’s been a great year for brands that sell shoes and other gear to runners.
Brooks Running, which is a subsidiary of Berkshire Hathaway, disclosed earlier this month that it ended 2024 with record global revenue, up 9% year-over-year. The company did not disclose exact revenue numbers.
“We’re now in our 25th year of growth. Over that 25 years, we've grown approximately 15% compounded,” said Dan Sheridan, CEO of Brooks. “I think it's an outcome of this incredible, sharp focus we have on the category of run that has mass appeal to anybody that really moves.”
Sheridan joined this week’s Modern Retail Podcast and spoke about Brooks’s 2024 performance and how the brand is setting itself up for growth in the years to come.
There have been different types of running booms over the years, Sheridan said. “In the early 2000s, the running boom was centered on a broader approach and invited walkers and people that just wanted to be active.” Right now, Sheridan said, Brooks is benefitting from the post-pandemic running boom, which is being led by Gen Z.
This generation, Sheridan said, is getting into running earlier. They are also trying to balance the mental, physical and social aspects of their life differently.
“Run clubs are the new dating app. It's where you're finding your mate. And people are choosing run clubs over going to the bar. And we see that in Gen Z. They're they're drinking less; alcohol sales are down. … So we think this next generation is a running boom for our industry.”
International sales, too, are fueling Brooks’s growth. Sales in China, in particular, grew 228% year-over-year.
Frequently asked about this episode
What does this episode say about brand & content?
Identify and target emerging cultural shifts in consumer behavior (e.g., Gen Z's focus on social and mental well-being in fitness) to unlock new growth opportunities.
What does this episode say about dtc strategy?
Leverage community-building initiatives like run clubs to foster deeper brand engagement and cultivate a loyal customer base, even over traditional marketing channels.
What does this episode say about supply chain & operations?
Prioritize international market expansion, particularly in regions with rapidly growing middle classes and increasing participation in relevant consumer activities, to diversify revenue streams. Brooks saw 228% growth in China by understanding exploding participation rates.
What does this episode say about founder & leadership?
Proactively manage supply chain risks by diversifying manufacturing locations to mitigate the impact of potential tariffs and trade disputes. Brooks shifted production primarily to Vietnam and Indonesia to avoid China tariffs.
What does this episode say about brand & content?
Sustain consistent growth by maintaining a sharp, long-term focus on your core category while adapting to new consumer motivations. Brooks maintained 15% compounded growth over 25 years by focusing solely on running.
