Brooks Running’s new CEO, Dan Sheridan, outlined the company’s expansion plans, targeting China and Europe as key growth regions.
Sheridan, who assumed the role on April 26, disclosed Brooks’ intention to inaugurate its first store in Shanghai this autumn, with potential future expansions.
“China is a top-10 market for running participation,” Sheridan emphasized, highlighting Brooks’ long-term commitment to the region over the next few decades.
Regarding Europe, Sheridan noted a revival in markets post the Russia-Ukraine conflict and escalating energy expenses, which previously deterred consumer spending and impacted retailers.
Sheridan expressed optimism about the global running community potentially doubling by 2031, with Brooks, established over a century ago, poised to capitalize on this growth trend.
Sheridan succeeded Jim Weber, who helmed Brooks for 23 years, steering it from near insolvency to a revenue of $1.2 billion.
Weber’s departure primarily stemmed from health concerns. Sheridan, with a tenure at Brooks since 1998, ascended through the ranks to COO in 2019 and president in 2022.
Brooks, headquartered in Seattle, dominates the U.S. market with a commanding 21% share in adult performance running shoes, led by its Ghost and Adrenaline GTS models.
While the U.S. contributes 85% of the company’s revenue, Brooks remains committed to the upper echelon of the market, emphasizing a fusion of science-backed designs and quality.
Sheridan noted the pandemic-induced surge in running activities, supporting price stability, with the average retail price for performance running shoes in the U.S. rising by 11% to $87.
Despite inflationary pressures and supply chain disruptions, largely originating from Vietnam and Indonesia, Brooks has managed to stabilize its operations, reinstating its annual product launch cycles.
The company’s latest offering, the Glycerin 21 priced at $160, incorporates nitrogen-infused cushioning, promising enhanced impact absorption and energy return for runners.
Sheridan remains confident in Brooks’ ability to navigate challenges and capitalize on emerging opportunities, underpinning the brand’s growth trajectory and future prospects.