New Balance announces sales of over $6.5 billion

It’s true that the 550 model and other New Balance standouts such as the 2002R, 530 and 574 have become increasingly popular in recent seasons. But at a time when the giants Nike and Adidas are facing difficult times, the American sports and lifestyle brand has surprised everyone with a record year in 2023.

The CEO of the independent American company, Joe Preston, has been reporting on the Boston-based company’s results for several days now. According to his presentation, New Balance has seen its sales jump by 23% in 2023 compared with 2022, to reach 6.5 billion dollars (6 billion euros). The CEO highlighted double-digit growth in all its main international markets.

The American company is proud of its roots in the United States, notably through its “Made in USA” line. This is being reinforced by the extension of the Skowhegan plant in Maine and the start of construction work on a new plant in Londonderry, New Hampshire.

“We are experiencing double-digit growth throughout the world, but last year Europe grew by 35%. The United States has been growing by 20% a year for the last three years. We’re also seeing this growth in the different categories,” explained Joe Preston in an interview with Bloomberg TV. We’ve topped one billion sales in clothing for the first time, and that includes men, women and children.”

The brand has also invested heavily in communications in recent seasons. In the run-up to the Olympic year, it had a strong television presence on the European market with the “Run your way” campaign. At the same time, over the last few years, the brand has greatly expanded its presence on the various sports fields, enlisting the services of tennis player Coco Gauff, basketball player Jamal Murray and footballer Raheem Sterling, among others.

“The sporting partnerships have had a tremendous impact,” says the CEO. We now have 350 athletes wearing the brand. But above all, the team has done an incredible job of connecting sport and culture around New Balance, and that gives the brand tremendous energy. And that brings in new customers. Last year, 63% of shoppers on the site were new consumers.”

In 2024, the brand intends to seize growth opportunities by expanding its physical presence. It is preparing to open 90 new shops around the world, as well as forty or so shop refurbishments. New Balance will also be creating a meeting point for athletes at the Place de la République in Paris during the Games. 

The New Balance Arch Company, as it was originally known, started out in 1906 producing orthopaedic insoles and then sports shoes. Known for its running models, the brand did not release its first specialised shoe until 1961. The company was bought in 1972 by Jim Davis, who is still the owner today.