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Dive Brief:
- Continuing its growth from the previous quarter, Brooks Running’s global second quarter revenue saw a 15% jump year over year, the company announced Tuesday. The privately-held activewear company did not disclose exact revenue figures.
- The company credited its “record” revenues to the double-digit growth of its wholesale and direct-to-consumer divisions. Its North America Q2 revenues increased 19% year over year, a spike it attributed to its Glycerin 21 super franchise, its Ghost Max line, and the Ghost 16 rollout, the release said.
- The company also promoted Managing Director of Brooks International Matt Dodge to president and chief operating officer, effective Thursday.
Dive Insight:
Brooks Running’s second quarter revenue growth marks the continuation of previous sales increases. The company’s first quarter revenue saw a 9% bump.
As it grows its revenue, Brooks Running continues to shake up its executive leadership team. Earlier this year, the company promoted Dan Sheridan from chief operating officer to CEO.
In addition to appointing a new COO, the company on Tuesday announced that it has named Josh Vaughan as its managing director in EMEA. Vaughan previously served as the EMEA General Manager for VF Corporation brands Icebreaker and Smartwool. He also held other leadership roles at sporting brands in Australia, North America, and Europe, per the announcement.
Beyond its leadership changes, Brooks Running touted its recent footwear successes. The Hyperion Max 2 retail and online sales were nearly triple that of its previous version over the same period, and the company anticipates that the shoe’s sales will grow during the fall marathon season. The company will also introduce 10 new or updated footwear styles this year between August and December.
“Brooks’ record results this quarter demonstrate the strength of our brand, business, and product,” Sheridan said in a statement. “We believe sharp focus on the performance category creates mass appeal as we continue to deliver innovative, premium products and experiences that runners and active people value.”
As Brooks Running sees its sales increase, its major activewear competitors have recently seen mixed results. Last December, Nike unveiled a cost-cutting strategy to save the company $2 billion over the next three years, a goal it aims to reach by trimming its product assortment, increasing automation and taking other steps to streamline its operations. In June, Nike reported that its fiscal year revenues were flat compared to last year, and its Q4 revenues dipped 2% compared to the year-ago quarter. Adidas, on the other hand, reported this month that its Q2 revenues saw a 9% increase year over year to 5.8 billion euros ($6.4 billion).
via https://www.aiupnow.com
Tatiana Walk-Morris, Khareem Sudlow
