In 2001, Seattle-based Brooks Running made a strategic decision to focus on only one category within sports retail, as well as the company never looked back, according to Chief Executive Jim Weber. in which category was running.
For the latest quarter, Brooks reported double-digit revenue growth, boosted by sales of the company’s shoes for avid runners, including Brooks’ Ghost as well as Adrenaline footwear products.
Brooks’ third-quarter sales climbed 11 percent, while global footwear revenue was up 14 percent during the period, the company reported Monday. The retailer is usually also gaining traction inside the “$100 as well as above” segment for adult running footwear, NPD data show.
“We’ve never experienced a more dynamic time inside the marketplace as well as we’re working harder than ever to build as well as deliver the best gear inside the entire world for all who run,” Weber said in a statement. “Despite uneven retail conditions, we continue to invest in future growth” in running.
Brooks, founded in 1914, is usually a private company as well as right now a subsidiary of Warren Buffett’s Berkshire Hathaway.
Brooks’ former parent company, Russell Athletic, was sold to the Omaha, Nebraska-based holding company in 2006. In 2012, Berkshire made Brooks a separate business unit, thus Weber right now reports directly to Buffett.
Unlike Nike, Under Armour, Adidas, Puma, as well as various other athletic apparel as well as accessories brands inside the marketplace today, Brooks only wants to do one thing well, as well as better than everyone else, according to Weber. The goal is usually to manufacture the best shoes as well as various other gear for runners.
When Weber took to the CEO position in 2001, Brooks was selling in a slew of various other categories outside of running, he said. yet the company quickly regrouped as well as pulled out of all various other business segments, seeing untapped potential with consumers who run — both for leisure as well as for competition.
To be sure, competition has picked up inside the sporting goods industry in recent years, especially as more players launch stand-alone businesses online. as well as e-commerce giant Amazon has muddied the waters further with its digital marketplace, prompting brands to either consider joining as well as selling on Amazon.com, or go the item alone.
According to Weber, Brooks was halted via selling directly through Amazon a few years back because the two couldn’t come to terms on an agreement over “premium brand presentation.”
Today, Brooks can still be found on Amazon.com through a handful of third-party vendors, like Zappos. Meantime, Brooks continues to build out its own website, as well as is usually testing a concept physical store in Seattle.
Weber said the item’s increasingly important for brands to have a strong presence online, especially those in his business. In two years, online sales of running shoes went via representing roughly the midteens of total sales, to 30 percent, he said.
Brooks just expanded into China as well as Brazil This kind of year, after the retailer’s successes in Europe, Japan as well as Canada.
Looking to the future, Brooks aims to grow its brand’s awareness among younger consumers, or those ages 25 to 35, Weber told CNBC. as well as to continue to “refresh” the running category, something Weber said hadn’t been done in decades, before Brooks gained its reputation as a running brand.
Brooks just launched its most “reinvented” running shoe, called the Levitate, in September.