The new CEO of Brooks Running, Dan Sheridan, emphasized the potential for growth in China and Europe, two regions where the company sees opportunities beyond its primary revenue source in the U.S.
Sheridan, who assumed the role of chief executive on April 26, outlined Brooks’ plans to establish its inaugural store in China this fall, beginning with Shanghai, with potential expansion in the future.
He underscored the significance of China as a top-10 market for running participation and affirmed Brooks’ commitment to a long-term strategy in the region.
While European markets experienced setbacks due to the Russia-Ukraine conflict and escalating energy costs, Sheridan expressed optimism about their resurgence.
He cited projections indicating a potential doubling of the global running population by 2031, with Brooks, founded 110 years ago, well-positioned to capitalize on this growth given its appeal to the 300 million people who prioritize running or walking as their primary fitness activity.
Sheridan succeeded Jim Weber, who led Brooks for 23 years, overseeing its transformation from near bankruptcy to $1.2 billion in revenue. Weber, 64, stepped down primarily for health reasons.
Having joined Brooks in 1998, Sheridan has dedicated his entire career to the company, assuming roles such as chief operating officer in 2019 and president in 2022.
With its headquarters in Seattle, Brooks commands a leading 21% market share in adult performance running shoes in the U.S., with popular models like Ghost and Adrenaline GTS driving sales.
Brooks focuses on the high-end market segment, emphasizing a science-based approach combined with innovative design to attract runners.
The company benefited from the surge in running during the pandemic, which supported pricing, with the average retail price for performance running shoes increasing by 11% to $87 in the U.S.
Sheridan noted that inflationary pressures and supply chain disruptions are gradually easing.
While most of Brooks’ shoes are manufactured in Vietnam, with a smaller percentage from Indonesia, supply chain challenges affected the company’s product launch cycles, resulting in a revenue loss of approximately $150 million annually.
However, Brooks has since resumed its full assortment of products and operational strategies.
The latest addition to Brooks’ product lineup is the Glycerin 21, featuring nitrogen-infused cushioning priced at $160. Sheridan highlighted its ability to absorb impact while returning energy to the runner as a significant innovation.
