Brooks Running is off to the races in 2022, and the company's CEO is attributing it to the country emerging into a post-pandemic world.
The running shoe brand — which is owned by Berkshire Hathaway (BRK-A, BRK-B) — recently reported revenue of $1.11 billion for 2021, a 31% year-over-year growth.
“We think we are in a running renaissance," Brooks Running CEO Jim Webber said on Yahoo Finance Live (video above). "We really see a secular growth in our sport. Running has ebbed and flowed a bit over the decades. It's always there but boy, did we see people get outside when the pandemic first hit. Walking, hiking, and running made the cut."
According to a global survey conducted in March 2021 by RunRepeat, runners who "normally only participate once or twice a week increasing their participation by 117% on average. Those previously running up to 3 times a week reported an increase of 55% on average."
Demand for athletic apparel and personal equipment has remained a consistent fad throughout the pandemic: Shoe sales, particularly athletic and running shoes, have been an uptrend since the pandemic’s first year.
Earning 'that second shoe'
Running was already on an upward trajectory prior to the pandemic.
According to a 2019 report from RunRepeat, participation in running increased by 57% over the past 10 years. As the pandemic began to disrupt normalcy, many individuals turned to fitness to keep themselves active and healthy.
In June 2021, Weber told Yahoo Finance that the company’s year-over-year revenue had grown by 57% in an environment where overall retail running shoes sales boomed by 27%.
Overall, the U.S. running shoe market was estimated to have increased sales by 20% in 2021.
“We're an overnight success over the last 20 years, I would say, because runners know if a shoe is working for them 20 miles in," Weber said. "Three weeks into the shoe, they know, mile after mile, if they would buy it again. And so we’ve always challenged ourselves to earn that second shoe, that second pair that people buy.
Retail conditions in the late-pandemic have enabled second-hand markets in eBay (EBAY), StockX, and GOAT to flourish in sneaker sales. For Brooks Running, in particular, Weber attributed customer satisfaction to not only Brooks Running’s “biomechanical science” approach to design and materials, but the brand’s focus to the “different experiences in running.”
“There are race day experiences and training experiences and comfort and cushioning," he said. "So people are experimenting and they're curious, but here's the key. Shoes have never been better. The material science that we're bringing into the cushioning puzzle on just engineered materials that are specific to only running shoes is just a part of what's happening in our category.”
As for the future of the running shoe industry, Weber is all but certain there's much to look forward to.
"There are 150 million people that run worldwide around the world today," he said. "We think it literally could double in the next 10 years.”
Luke is a producer for Yahoo Finance. You can follow him on Twitter @theLukeCM.
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