Footwear Insight

10 • Footwear Insight ~ January/February 2025 footwearinsight.com By Tom Ryan A t a keynote session at NRF '25, Joe Preston, New Balance Athletics' CEO, credited the brand's success in recent years to efforts to better position New Balance as a "premium brand" by working with retailers optimally supporting the brand. "e way we try to manage the marketplace here in the U.S. or anywhere around the globe, our regional teams are really great at making sure that our brand is showing up how we want it to show up," Preston said at the trade event held in mid-January at the Javits Center in New York City. "If it's stuck in the corner, then the consumer is not going to be able to experience our brand. So, we practice selective distribution. We're not everywhere. And the retailers that we work with, we work with them to make sure that the brand is coming to life, whether that's in store or online." His comments came aer New Balance wrapped up its fourth straight year of at least 20% growth. Sales grew 20% in 2024, to $7.8 billion. In recent prior years, New Balance's sales grew 23% in 2023, 21% in 2022 and over 30% in 2021 in a recovery aer the pandemic's first year. e embrace of more "selective distribution, taking place over the last six years, also helped raise New Balance's average footwear price to over $80 currently, up from just under $60 a pair and now leading the industry among the top four brands," Preston said, citing data from Circana. He added, "We do business with retailers that we believe are going to want to position the brand premium and are not just in it to try to discount it." An Authenticity Advantage Other factors supporting New Balance's recent success include strong demand for heritage brands and retro styles. "I think younger consumers today are looking for authenticity," said Preston, who was interviewed on- stage at the NRF event by Yahoo Finance's Brad Smith. "And I think for a brand like ourselves, it's not just about having heritage. We've been around since 1906 and a leader within running since the 70s. I think when con- sumers discover our brand, what they see is authenticity that's rooted in performance. And then our designers do a great job of bringing some of our retro styles or new styles, or combining those styles, giving freshness and newness to life." Preston also believes New Balance has benefited from a "think global and act local" approach in go-to-market approaches that's particularly supported its success overseas. New Balance practices an "80/20" guideline in which 80 percent of its approach within markets is the same globally while the re- maining 20 percent adapts to local tastes, including adjustments for weather, he said. e CEO said, "e top selling styles are the top selling styles everywhere. And I attribute that a lot to our teams running our offense and running it consistently around the globe." International makes up about 60% of its business with the brand having a major presence in Western Europe and North Asia. Baseball a Big Winner for NB In sports, a big win for New Balance has been baseball. Preston said New Balance had an "Endorsed By No One" campaign in New Balance's Path To Premiumization BRAND INSIGHT New Balance CEO Joe Preston, left, speaking at NRF '25. THE FOOTWEAR EYE

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