Footwear Insight

the nineties supporting its sports categories but then, outside of track & field, NB le sports overall, largely because the brand wasn't able to compete for endorsements. About 12 years ago, New Balance decided to reenter sports, starting with baseball and a goal to become the leading baseball footwear brand within five years. Preston said, "It took seven and we're number one in baseball today. About 25% of Major League Baseball players wear our product. And it gave the company confidence that we can develop the product, get the athletes, and bring them to life in other sports." New Balance now has star endorsements across many sports, including the Los Angeles Dodgers' Shohei Ohtani in MLB and Los Angeles Clippers forward Kawhi Leonard in the NBA. In soccer, the brand's team sponsor- ships included Liverpool. In tennis, a sport New Balance never completely le, U.S. star Coco Gauff endorses the brand and has her own signature shoe. In running, long-time endorsers include Sydney McLaughlin, the six-time world record holder in the hurdles; and Gabby omas, a sprinter who won three golds at the Olympics this year. Preston said New Balance is better able to compete for player endorsements because it's able to tailor bespoke programs for its smaller roster of athletes. e programs build around the athlete's online personalities and oen feature design feedback from the athlete. ey can also support an athlete's commitments to community, including setting up foundations, that's more important with today's athletes. e arrival of NIL (name, image, like- ness) deals is also widening endorsement opportunities for New Balance. is past August, New Balance signed Cooper Flagg, a 17-year-old freshman at Duke who's widely expected to be the top dra pick in the 2025 NBA Dra. He will wear Nike playing on the court for Duke and then wear New Balance on the court when his NBA career begins. He wears New Balance now off the court. Preston said, "at disruption that's taking place across college sports is just another way that companies like ours can deal with this new reality and carve out a position for us." Collabs Stay Hot On the lifestyle side, growth is being boosted by collaborations. e first signature shoe for Jack Harlow, the Louisville rapper, debuted last October and the brand recently expanded its relationship with Teddy Santis, the founder of the New York based lifestyle brand, Aimé Leon Dore. Limited-edition collaborations, including recent ones with couture brand Miu Miu, streetwear footwear brand Salehe Bembury, and minimalist brand JJJJound, oen wind up on reseller sites such as StockX. Said Preston about the limited-edition collaborations, "It's very interesting when you take two companies and combine them. If they have authenticity and a consumer set that is looking for something new and fresh, you reap the benefit of both of those brands when you combine them. I think that will continue, but I do believe it needs to be selective because over time, it's happening more and more by many brands." Looking to 2025, Preston said New Balance is aiming for another 20% gain, which would li annual sales at about $9.4 billion. Preston, who took over as CEO in 2019, set a goal in 2023 to double New Balance's size to become the next $10 billion footwear brand. Sales were $5 billion in 2022. Preston said sales in 2024 were "really strong" in North America with sell-through rates "much stronger" than the 20% gain. He said, "When you're a wholesaler and a retailer, sometimes your results can be a little bit skewed, because one is exactly what you're selling last week and the other one is what you're shipping as opposed to selling. So, our velocity is stronger than what our actual fiscal results were. at's why we feel confident coming into 2025." n footwearinsight.com January/February 2025 ~ Footwear Insight • 11 Preston said New Balance is better able to compete for player endorsements because it's able to tailor bespoke programs for its smaller roster of athletes. The programs build around the athlete's online personalities and often feature design feedback from the athlete. www.isanextgenmaterials.com

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