New Balance, headquartered in Boston, Massachusetts, reported a significant milestone with $6.5 billion in annual sales for 2023. This marks a 23% surge compared to the previous year. CEO Joe Preston attributed this growth to expansion in all global markets.
"There's never been a better time to be at New Balance as we work together to bring our collective and intentional best every day. Congratulations to our entire NB team on these great results – I couldn't be more proud."
- Preston
In addition to footwear, New Balance achieved a new milestone as its global apparel business surpassed $1 billion in 2023, marking a new record. CEO Joe Preston emphasized that the apparel category will continue to be a key focus in 2024.
Sales experienced robust growth by region, with Europe seeing an increase of over 35%, and the U.S. recording a growth of over 20%.
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Overall, the results reflected a remarkable 96.6 percent surge in sales since 2020, when revenues stood at $3.3 billion for the year. Across all regions, New Balance's sales nearly doubled since 2020. In 2018, the private company had disclosed its goal of reaching $7 billion in sales by 2023 to FN's sister publication WWD.
In 2023, New Balance experienced significant milestones, including Coco Gauff's victory at the US Open, marking her first Grand Slam championship. Collaborations with athletes such as Kawhi Leonard and Shohei Ohtani contributed to the brand's popularity, particularly among younger demographics.
"In 2023 we continued with record investments in our digital capabilities, brand campaigns and commitment to domestic manufacturing."
- Preston
He emphasizes the recent growth of the company's Skowhegan, Maine facility, along with the establishment of a new U.S. factory in Londonderry, New Hampshire.
Preston noted in a statement that the company expanded its footprint across crucial retail partners and its own direct channels.
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A significant portion (63 percent) of New Balance's website visitors in 2023 were new customers. Across wholesale channels, leading sneaker retailers consistently spotlighted New Balance as a top-performing brand throughout the year.
During a conference call with analysts in November, Foot Locker CEO Mary Dillon reported that New Balance experienced robust sales growth in the third quarter, exceeding 100 percent compared to the previous year, with strong performance across various product lines for men, women, and children.
"We continue to see door expansion opportunities in New Balance as we build on the share gains we’ve seen in this exciting brand."
- Dillon
During a conference call with analysts in November, Pete Nordstrom, President and Chief Brand Officer of Nordstrom Inc., highlighted New Balance as one of the key brands driving growth in active footwear sales for the quarter.
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In 2024, New Balance intends to inaugurate 90 new stores worldwide and undertake 50 store renovations featuring a fresh design concept focused on fostering community engagement.
"As we move forward, we will stay true to who we are as we connect sport and culture and drive our product innovation and brand investments. We will continue to build best-in-class global operations and leverage our independent and entrepreneurial spirit towards another strong year."
- Preston