New Balance released solid sales figures for 2024. The shoe company brought in a record $7.8 billion last year, a 20% surge over 2023.
It appears New Balance anticipates the growth to continue. Within a few years, CEO Joe Preston expects annual sales to reach $10 billion globally.
While New Balance’s annual results are impressive, they pale in comparison to Nike’s $51 billion and Adidas’ $23 billion in 2023. However, market trends and customer demand are shifting shoe buyers away from the top two, leaving room for New Balance to gain some market share.
“In lifestyle running, New Balance continues to deliver strong momentum through a combination of door expansions as well as like-for-like gains,” noted Footlocker CEO Mary Dillon during an earnings call, per Yahoo! Finance. “Looking ahead, we continue to see room for growth with this important partner across all of our banners and geographies.”
New Balance Strategy for Growth
In spring 2024, Preston spoke about changing the company’s image. Wanting to shake New Balance’s reputation as a “dad shoe,” Preston set plans in motion to refresh the brand through innovative products.
“We do believe the next big revolution is going to come in materials,” Preston told Yahoo! Finance. “I fundamentally believe that, and I think it’ll come plant-based or something that will revolutionize the industry.”
As part of the image revamp, New Balance has been working to attract younger generations through social media campaigns. The company has been actively creating compelling content and images to post on Instagram.
Additionally, New Balance is collaborating with popular athletes like Kawhi Leonard and J.J. Watt to increase visibility. Tennis player Coco Gauff has been wearing the brand for years, showing off her shoes numerous times during matches.
Data obtained by Google Trends reveals the New Balance strategy might be working. In the last few months of 2024, search traffic for the brand was the highest it had been in over five years.
Meanwhile, competitors like Nike are reporting slow sales and poor quarterly performances. After revealing a 7.7% drop in revenue for the second quarter of fiscal year 2025, Nike leadership decided to refocus the brand and go back to its athletic roots.
