Latest news with #ConsumerTrackingService
Yahoo
02-05-2025
- Business
- Yahoo
Brooks Sees Double-Digit Revenue Growth Across All Regions in Q1 as Running Shoes Remain Hot
Brooks ended the first quarter of 2025 by setting a new record. The Seattle-based performance running brand said it achieved an all-time quarterly high in revenue in Q1, with all regions contributing double-digit growth or better, leading to 15 percent year-over-year global revenue growth. (Brooks does not disclose specific revenue numbers.) More from Footwear News Rocky Brands Confirms Price Hikes Starting in June, Plans Production Shifts Skechers Reports Record Q1 Sales But Withdraws 2025 Guidance Due to 'Macroeconomic Uncertainty' By region, Brooks noted that it continued eight consecutive years of growth in North America, up 13 percent in Q1 revenue including 38 percent year-over-year growth in Canada. In other regions, Brooks' global growth efforts delivered a quarterly revenue record in Europe, Middle East, and Africa (EMEA), up 11 percent currency-neutral, and 221 percent year-over-year revenue growth in Asia Pacific and Latin America (APLA). According to data from Circana cited by Brooks, the brand maintained its position as the No. 1 adult performance running footwear brand in U.S. national retail and held seven of the top 25 styles sold, more than any other brand. Brooks also led the U.S. specialty retail channel, delivering 20 percent year-over-year growth. In France and Germany in Q1, Brooks grew 37 percent and 28 percent, respectively, in adult performance running footwear priced at 90 euros or higher, outpacing overall market growth. In Germany specifically, Brooks caught the market leader to now share the No. 1 spot in this segment. This marks the first time the brand has led in any European country. Brooks also cited that it launched six performance footwear styles in Q1 2025, which drove 27 percent growth in active full-price sales in the period. Leading global footwear sales for the quarter, the new Glycerin 22 super franchise, which debuted Brooks' DNA Tuned midsole foam. Brooks also launched a lifestyle footwear collection in the quarter, as well as a collaboration with Jeff Staple. 'I am so proud of the Brooks team and the strategy we're executing to invite more people into the brand and to experience the many benefits running and movement deliver,' Dan Sheridan, chief executive officer of Brooks Running, said in a statement. 'Our record results are an outcome of real product innovation, brand demand at an all-time high, and execution excellence across our teams.' This news comes after Circana noted that running shoes continued to dominate in the first quarter of 2025 despite an overall slowdown of footwear sales in the period. According to Circana's Consumer Tracking Service, sport lifestyle, or athleisure sneakers, remained the largest footwear segment and grew almost 1 percent overall for the quarter. Running shoe sales grew 7 percent in Q1 and generated the most incremental dollar growth versus last year. Best of Footwear News A Complete Calendar of All the Footwear Trade Shows in 2025 A Timeline of Nike's 5 CEOs That Have Held the Role Since 1972 These Theories About How Black Friday Got Started Will Surprise You
Yahoo
02-05-2025
- Business
- Yahoo
Brooks Sees Double-Digit Revenue Growth Across All Regions in Q1 as Running Shoes Remain Hot
Brooks ended the first quarter of 2025 by setting a new record. The Seattle-based performance running brand said it achieved an all-time quarterly high in revenue in Q1, with all regions contributing double-digit growth or better, leading to 15 percent year-over-year global revenue growth. (Brooks does not disclose specific revenue numbers.) More from Footwear News Rocky Brands Confirms Price Hikes Starting in June, Plans Production Shifts Skechers Reports Record Q1 Sales But Withdraws 2025 Guidance Due to 'Macroeconomic Uncertainty' By region, Brooks noted that it continued eight consecutive years of growth in North America, up 13 percent in Q1 revenue including 38 percent year-over-year growth in Canada. In other regions, Brooks' global growth efforts delivered a quarterly revenue record in Europe, Middle East, and Africa (EMEA), up 11 percent currency-neutral, and 221 percent year-over-year revenue growth in Asia Pacific and Latin America (APLA). According to data from Circana cited by Brooks, the brand maintained its position as the No. 1 adult performance running footwear brand in U.S. national retail and held seven of the top 25 styles sold, more than any other brand. Brooks also led the U.S. specialty retail channel, delivering 20 percent year-over-year growth. In France and Germany in Q1, Brooks grew 37 percent and 28 percent, respectively, in adult performance running footwear priced at 90 euros or higher, outpacing overall market growth. In Germany specifically, Brooks caught the market leader to now share the No. 1 spot in this segment. This marks the first time the brand has led in any European country. Brooks also cited that it launched six performance footwear styles in Q1 2025, which drove 27 percent growth in active full-price sales in the period. Leading global footwear sales for the quarter, the new Glycerin 22 super franchise, which debuted Brooks' DNA Tuned midsole foam. Brooks also launched a lifestyle footwear collection in the quarter, as well as a collaboration with Jeff Staple. 'I am so proud of the Brooks team and the strategy we're executing to invite more people into the brand and to experience the many benefits running and movement deliver,' Dan Sheridan, chief executive officer of Brooks Running, said in a statement. 'Our record results are an outcome of real product innovation, brand demand at an all-time high, and execution excellence across our teams.' This news comes after Circana noted that running shoes continued to dominate in the first quarter of 2025 despite an overall slowdown of footwear sales in the period. According to Circana's Consumer Tracking Service, sport lifestyle, or athleisure sneakers, remained the largest footwear segment and grew almost 1 percent overall for the quarter. Running shoe sales grew 7 percent in Q1 and generated the most incremental dollar growth versus last year. Best of Footwear News A Complete Calendar of All the Footwear Trade Shows in 2025 A Timeline of Nike's 5 CEOs That Have Held the Role Since 1972 These Theories About How Black Friday Got Started Will Surprise You Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Running Shoes Continue to Drive Sales in Q1 Despite Overall Footwear Slowdown
Running shoes continued to dominate in the first quarter of 2025 despite an overall slowdown of sales in the period. According to new data from Circana's Consumer Tracking Service, sport lifestyle, or athleisure sneakers, remained the largest footwear segment and grew almost 1 percent overall for the quarter. Running shoe sales grew 7 percent in Q1 and generated the most incremental dollar growth versus last year. More from Footwear News Department Store Sales Continue to Slip in Otherwise Positive March for Retailing Analyst: Skechers Could Take Market Share As Value Rules in Challenging Retail Backdrop Overall, Circana noted that the performance category outperformed the total market, with dollar sales up 4 percent. In addition to running, walking sneakers were strong, as well, growing double-digits based on both dollar and unit sales. On the flip side, the fashion shoe category continued to slide, with sales dropping 9 percent in Q1. However, Circana said that growth within fashion stemmed from some smaller segments such as high shaft boots, flats, and ballerina. In addition, boat shoes grew for the first time in about 10 years, driven by new fashion interpretations in women's. Slipper sales also increased by 10 percent. These numbers come as Circana found that U.S. footwear industry sales totaled $19.3 billion, a decline of 4 percent versus the same period last year. Beth Goldstein, footwear and accessories advisor at Circana, said in a statement that while shoe sales slowed in Q1, demand remained strong for certain product categories, including running and sport lifestyle, as well as select fashion styles that provide comfort and versatility. 'The upcoming months are likely to test the limits of consumers' wallets, but these results are an indicator of the types of footwear that consumers will continue to prioritize,' Goldstein said. This new data comes one day after AlixPartners revealed a whopping number of shoppers who are walking away from footwear purchases due to high costs. 'Price is top of mind for consumers shopping for shoes, with 78 percent saying they have walked away from a shoe purchase due to cost, up 12 percentage points from last year,' the report's authors said. Shoppers in the survey said they are planning to reduce their spending on all shoe categories this year: shoes/boots (down 29 percent); fashion/dress footwear (down 26 percent); athleisure/multiactivity shoes (17 percent); and casual shoes (down 16 percent). 'Some 43 percent of survey respondents expect to spend no money at all on work shoes, indicating consumers plan to cut back on core purchases by trying to extend the life of footwear they already have,' the AlixPartners report stated. Best of Footwear News A Complete Calendar of All the Footwear Trade Shows in 2025 A Timeline of Nike's 5 CEOs That Have Held the Role Since 1972 These Theories About How Black Friday Got Started Will Surprise You Sign in to access your portfolio
Japan Times
02-04-2025
- Business
- Japan Times
U.S. tariffs on Vietnam would be a blow to Nike and other sportswear brands
Nike could soon face another blow in its effort to revive its brand and reverse a long decline in sales: U.S. tariffs on imports from Vietnam. On Wednesday, U.S. President Donald Trump is expected to announce which countries and products he will target with a new round of tariffs aimed at encouraging domestic production and coaxing other nations to buy more U.S. goods. Vietnam, which runs a $123.5 billion trade surplus with the United States, is a prime target. Nike is one of several sportswear brands heavily reliant on Vietnam as a production site and higher tariffs would force the company to absorb higher costs or hike its prices at a time when it is already discounting some items to clear inventory. Nike produced 50% of its footwear and 28% of its apparel in Vietnam in its 2024 financial year, according to its annual report. Rival Adidas is slightly less exposed, relying on Vietnam for 39% of its footwear and 18% of its apparel. The average U.S. tariff rate on footwear from Vietnam is 13.6%, while the rate on apparel is 18.8%, according to calculations based on January trade data made by Sheng Lu, a professor of fashion and apparel studies at the University of Delaware. "If tariffs are extended there, then Nike's got a problem," said Morningstar analyst David Swartz. Nike and Adidas are hardly alone. Vietnam has become a hub for high-tech running shoes, sportswear and outdoor apparel as brands have sought to reduce exposure to China. Lululemon, Columbia Sportswear and Amer Sports, which owns Salomon and Arc'Teryx, count Vietnam as their top manufacturing country. But the potential tariffs come at a critical moment for Nike, which has lost market share of late to competitors viewed as fresher and more innovative, like On and Hoka. In a quarterly earnings call last month, Chief Financial Officer Matt Friend said Nike's revenue was expected to continue to fall next quarter. That outlook factored in current tariffs, said Mari Shor, senior equities analyst with Columbia Threadneedle Investments, which holds Nike shares. "But what if it gets worse?" Some smaller, younger sportswear brands are even more exposed to Vietnam. Fast-growing running brand On in 2024 sourced 90% of its shoes and 60% of its apparel and accessories from the country. On shoes are already expensive, selling for $130 to $330 a pair, and Samuel Wenger, the brand's chief operating officer, said tariffs were among the factors On considers when deciding on price. "Our premium brand gives us the ability to adapt our pricing thoughtfully," he said. Average U.S. prices of sneakers have already risen by 25% since 2019, partly because of rising production costs, said Beth Goldstein, footwear industry analyst at market research firm Circana. While U.S. sales of running shoes have risen 16% to $7.4 billion since 2021, according to Circana's Consumer Tracking Service, U.S. consumer confidence recently hit a four-year low, suggesting more price increases could prove hard to swallow. Moving production out of Vietnam is no simple matter. Other Southeast Asian countries, such as Cambodia and Indonesia, could face tariffs too, and production costs are already rising there. Factories in Cambodia are charging 5% to 10% more as they get more orders from retailers looking to shift production from China or Vietnam, said Michael Yee, CEO at apparel and accessories sourcing company MGF Sourcing in Hong Kong. Nike, Adidas and Amer Sports declined to comment on questions about Vietnam tariffs. Lululemon and Columbia Sportswear did not reply to requests for comment. The good news, say experts, is that tariffs on imports from Vietnam — particularly for apparel — are unlikely to be as steep as those in China. Leaders in Hanoi have taken several steps to stay in Trump's good graces, promising more imports from the U.S., lower duties, and allowing Starlink — the satellite company owned by the U.S. president's adviser, Elon Musk — to offer its internet services in the country. The Trump Organization, meanwhile, is partnering with Vietnam on potential investments in hotel, real estate and golf course projects possibly worth billions of dollars. "Vietnam has proven its ability to play the geopolitical game very skillfully," said T. Rowe Price portfolio manager Johannes Loefstrand, who runs a Frontier Markets Equity strategy weighted toward Vietnam stocks. Wilbur Ross, who served as commerce secretary in Trump's first administration, said the president had generally good ties with Vietnam and had no reason to hit it hard with tariffs that would be felt on main street. "People notice the cost of apparel because they buy it fairly frequently," Ross said.
