Brooks Running CEO Dan Sheridan on Global Growth, Consumer Demand, and Brand Strategy

Consumer Resilience and Global Growth

• 🏃 Brooks Running's consumer remains very resilient, with the brand growing 16% in its 2025 fiscal year.
• 🌍 The company is experiencing strong growth not just in the US (up over 20% in AMA), but also globally, particularly in Asia.
• 💡 Running and walking participation is a key driver, with consumers prioritizing athletic footwear and apparel even when cutting back on other discretionary spending.

Supply Chain and Market Dynamics

• 🚚 Supply chain tensions have normalized over the past four to five months, stabilizing operations for Brooks.
• 📈 Despite high tariffs in the footwear category, Brooks has worked through its value chain to manage the impact, anticipating some profitability compression but maintaining a long-term vision.
• 🇨🇳 Brooks is making a significant investment in China, planning 30 stores by 2027, with China sales projected to increase by 245% by 2025, differentiating itself from competitors like Nike and Adidas.

Brand Strategy and Competitive Edge

• 🎯 Brooks differentiates itself through product innovation, focusing on biomechanics research to help runners perform better and stay healthy.
• 🏆 The company emphasizes operational excellence and global supply chain management, executing well in over 55 countries.
• ❤️ Brooks fosters an authentic and relevant brand that connects with runners' journeys, prioritizing consumer obsession over direct competition.

Ownership and Long-Term Vision

• 🤝 Brooks benefits immensely from being a subsidiary of Berkshire Hathaway, which provides a long-term ownership perspective crucial for strategic decisions.
• ⏳ This ownership allows Brooks to focus on 10-20 year horizons, a significant advantage over competitors.
• ✅ The leadership under Greg Abel at Berkshire Hathaway is seen as consistent, maintaining the culture of trust and empowerment.

Market Position and Participation

• 📊 The US remains Brooks' largest market, accounting for about 80% of global revenue, with significant growth potential.
• 🇩🇪 Brooks is the number one performance running brand in Germany and is just beginning its expansion in China.
• 📈 Globally, approximately 200 million people participate in running, and Brooks is focused on winning with this growing consumer base.