With performance running footwear models experiencing steady demand and strong heat behind running-influenced lifestyle offerings, the running footwear category had a banner second quarter for a wide range of brands, with momentum expected to continue.
Sales in the second quarter climbed 19 percent at Brooks, 20 percent at Hoka, 38 percent in constant currencies at On; 42 percent at Saucony, and more than 20 percent at Altra, owned by VF Corp. Asics saw double-digit growth in the U.S. while Nike delivered high single-digit growth in its performance run styles in its fiscal fourth quarter ended May 31. Adidas saw a 25 percent increase in running during the second quarter.
The Running category’s strength was evident in point-of-sale data from Circana, which showed that, while overall U.S. footwear industry dollar sales were down 1 percent in the first half, Sport Lifestyle, the largest footwear segment, generated a solid 3 percent gain in the first half, with growth driven by running inspired styles.
Performance Footwear also grew, led by running, which showed an increase of 7 percent; and cross training, gaining 9 percent year over year.
Within Performance Footwear, maximal shoes continue to lead the growth in Performance Running. “In the last year, innovation and new releases have driven replacement purchases,” Beth Goldstein, footwear and accessories advisor at Circana, told SGB Executive, in an exclusive interview.
The 7 percent growth in Performance Running styles in the half includes performance styles sold at general sporting goods as well as department stores, major online retailers, family shoe retailers, as well as mid-tier chains, some off-price, mass and warehouse clubs. Solely at run specialty and outdoor specialty, running footwear in performance styles showed a similar gain, up 5 percent.
Goldstein, however, said the overall growth in Running Footwear for many brands is being driven by outsized growth on the Lifestyle side. Run-inspired offerings are a larger category and growing at two times the rate of Performance Running styles, according to Circana data. She said, “In specialty, running inspired is only a fraction of the size of running, but it is growing about 3X faster than running.”
Overall, Goldstein said Performance Running’s units were flat in the half with the dollar gains boosted by a shift to higher price points. Running-inspired styles growth in dollars is being driven by both unit sales gains as well as by higher average prices, due to growth of higher priced items.
Goldstein believes the running category overall is benefiting from a number of factors, including a social component with the popularity of run clubs. The category has long benefited from its versatility, such as being able to be used for exercise as well as everyday wear. However, the fact that running silhouettes have caught some fashion buzz is feeding a bigger lifestyle opportunity. Goldstein said, “Because athletic has become fashion, the running-inspired business continues to do well also. It also pairs well with key apparel trends such as sweats, and wide-leg jeans. The nostalgia is a key factor as well, many of the best-performing franchises right now are retro.”
“We are in the midst of a generational change in performance running,” Matt Powell, veteran retail analyst who heads up the Spurwink River consulting firm, told SGB Executive. “The category first took off during the pandemic as people wanted a way to stay fit, but remain socially isolated. In the last few years, Performance Running has tipped over to sportswear, which is where the real volume is. While there will be shifts around brands – Hoka slowing in the U.S., Saucony surging, for example – I expect the category to continue to grow for the next few years.”
SGB Media summarized the reported results for the second-quarter performance of several major players in the running category.
Adidas Running Jumps 25 Percent in Q2
Adidas running sales within its performance segment grew 25 percent globally in the second quarter.
Bjørn Gulden, Adidas’ CEO, admitted on an analyst call that finding growth in running performance styles has been a “challenge for us for a long time,” but the business is now seeing an uptick with particularly strong demand for the Adizero franchise as well as growth with the Supernova.
Gulden said the growth in running is coming across all channels, including run specialty accounts, with the Adizero speed-focused model finding success across numerous styles, including carbon-plated models. He said, “We added the Evo SL, which is a €150 shoe that has been accepted tremendously well in the industry.”
One area within the running category where Adidas has been underperforming is addressing comfort, said Gulden, noting that “other brands have done a better job than us.” Gulden said a new comfort-focused running style will be introduced next year to drive growth at run specialty, traditional sporting goods and lifestyle channels. He said, “For next year, we will have a great comfort concept coming, which will then give us three very solid pillars in the running business going forward.”
Gulden added that running is the one category Adidas feels most “comfortable with what we have in the pipeline” as far as innovation. However, he also said it will take time to regain shelf space at run specialty and investments are being made with activations and sales hires in that channel. Gulden said about Adidas’ running business, “There are many, many markets where our market share in specialty is a joke. But again, if we continue doing what we’re doing and we have some time, then you will see very good progress.”
Altra Sees Q2 Growth Exceeds 20 Percent
On VF Corp’s analyst call for the fiscal first quarter ended June 28, CEO Bracken Darrell highlighted the success of Altra, which grew over 20 percent in the quarter. He said the brand is on track to exceed $250 million in sales this year, up from $60 million when it was acquired in 2018.
“And that size with less than 10 percent awareness in the U.S. and much lower than that in the rest of the world,” he said. “This is the kind of business that we can scale. It’s already tied for the #1 shoe in trail running in the U.S. and one of the fastest-growing franchises in the road running business.”
Asics Drives Double-Digit Q2 Growth In U.S., Boosted by Wholesale Strength
Asics North America reported that sales on a currency-neutral basis expanded by double digits in both the U.S. and Mexico in the second quarter, with a high-single-digit gain achieved in Canada.
The gains were driven by a nearly 40 percent sales increase in the U.S. Wholesale channel, led by double-digit growth at run specialty and high double-digit growth in the Sportstyle channels. At Run Specialty, strong performances were seen across a diverse set of Performance Running models, with double-digit growth generated by the Gel-Nimbus and Gel-Kayano, and triple-digit growth for the Novablast. In the Sportstyle category within the wholesale channel, the GEL-1130 delivered triple-digit growth while the Gel-Kayano 14 and Gel-NYC also saw robust gains.
At its own retail operations, Asics Meatpacking store in New York City’s Chelsea section achieved 15.5 percent net sales growth. Additionally, the brand’s OneAsics loyalty membership program experienced a 22.8 percent year-over-year growth across North America.
Asics said the quarter marked North America’s sixth consecutive quarter of revenue growth, and the region showed a quarterly profit for the eighth time in the past nine quarters, driven by success in wholesale.
“The consistent demand for Asics footwear products across the region speaks to our relentless pursuit of developing technically advanced Performance Running products while remaining very aware of broader cultural and lifestyle trends to support the Sportstyle category,” said Koichiro Kodama, president and CEO of Asics North America. “Our commitment remains strong to our valued key account partners, and there is great excitement for the upcoming expansion of the Blast footwear series this fall. The Megablast and Sonicblast Performance Running models will bring even more energy into the marketplace with an expanded offering from Asics to consumers.”
Brooks Delivers 13 Percent Q2 Growth in North America
Brooks Running, which is owned by Berkshire Hathaway (BRK), achieved 13 percent year-over-year revenue growth in the second quarter in North America, driven by a strong performance in wholesale footwear and gains across both the U.S. and Canadian markets.
Brooks noted that the U.S. running specialty market remains healthy overall, citing Circana, which shows that the U.S. Performance Running Footwear market grew 9 percent in Q2, driven by premium (priced at $100 or more) running footwear, which increased 16 percent. Brooks said the brand’s own results outpaced the U.S. specialty channel’s growth, with the brand holding three of the top six Performance Footwear styles sold at U.S. retail in Q2.
Including surges of 44 percent in EMEA and 55 percent in APLA, Brooks’ global revenues grew 19 percent to set an all-time quarterly revenue high for the second consecutive quarter. Globally, Glycerin was the top-selling franchise, up 27 percent year over year, while Ghost and Ghost Max banged out 16 percent and 82 percent increases, respectively. Brooks launched eight footwear styles in the second quarter, which contributed to a 28 percent unit growth.
“Brooks continues to deliver outstanding value while adapting to a dynamic business environment,” said Dan Sheridan, Brooks Running’s CEO, in a statement. “Our innovative product pipeline and global business model, combined with strong consumer connections, reflect our team’s customer-first approach. I’m excited for Brooks’ opportunity to earn the trust of more runners in this competitive market.”
Hoka’s Q2 Revenues Jump 20 Percent on Wholesale Momentum
Global Hoka brand revenue in Deckers Brands’ fiscal first quarter ended June 30 increased 19.8 percent to $653.1 million, topping internal and external expectations. Hoka’s Wholesale business jumped 30 percent year-over-year, driven primarily by the strength of the international business; DTC increased 3 percent, reflecting expected ongoing pressure in the U.S. online channel.
In the U.S., Hoka’s performance was said to be in line with expectations, with the U.S. Wholesale business experiencing growth.
“Marketplace dynamics are generally playing out as anticipated amid key franchise upgrades, resulting in the brand experiencing a similar quarter relative to the one [quarter] prior,” said Stefano Caroti, CEO, Deckers Brands, on an analyst call.
Caroti said Hoka will be making changes to the flow of new product introductions, as the transition to the Bondi 9 and Clifton 10 led to some promotional challenges due to the clearance of obsolete models in the latest and prior quarters. However, he inferred Hoka’s wholesale business in the U.S. remains healthy.
“From a U.S. Wholesale perspective, performance continues to reflect our disciplined approach to marketplace management,” the CEO continued. “Hoka is driving revenue growth from increased sell-in, additional doors with key partners to satisfy greater in-store demand and reorders as sell-through in the channel continues to outpace revenue growth.”
Regarding current franchise upgrades, Caroti stated that the “consumer signals” from a global perspective are “quite positive” for Bondi, Clifton and Arahi.
“Bondi and Clifton are driving consistent and healthy sell-through in the global marketplace across channels and segments of distribution, evidenced by representing the top two running franchises in the U.S., according to Circana, driving very strong reorders and representing the top sellers among acquired and retained customers in EMEA and doubling year-over-year volumes in China for the spring/summer ’25 season,” he added.
“Early feedback in the U.S. has been very positive” on the Arahi 8 update since launching at the beginning of July.
For the current fiscal second quarter, Hoka’s sales are expected to moderate to 10 percent growth, reflecting the shift of approximately $25 million in wholesale distributor orders from EMEA from the second to the first quarter due to the warehouse transition. Steve Fasching, CFO, said on the analyst call, “When you adjust for that, we’re still in the mid-teens for the first half of the year growth for the Hoka brand.”
Nike’s Running Advances High-Single Digits in Fiscal Q4
Running was the only other major category outside of training driving growth for Nike in its fiscal fourth quarter ended May 31, climbing into the high single digits.
Elliott Hill, president and CEO, Nike, Inc., said about Nike’s running opportunity on an analyst call, “We have innovative and coveted products across our nine-box matrix that we’ve been talking a lot about: three silos – Pegasus, Vomero, Structure – times three price points. We also have trail and race.”
During its fiscal fourth quarter, the standout running model was the Vomero 18, which became a $100 million-plus franchise in just over 90 days post-launch with strong sell-through across geographies. Hill also said the Pegasus Premium is selling well on the performance side. Among Sportswear (Lifestyle) offerings, retro-running styles including the P-6000, Vomero 5 and Shox are seeing “continued strength,” according to Hill.
Addressing future launches, Hill said Nike has high expectations for the reintroduction of the Air Max 95 on the lifestyle side, marking its 30th anniversary, as well as the launches of the Vomero Plus and Vomero Premium within the performance category. Hill also inferred the brand remains committed to reinvesting in run specialty, noting that the brand recently hosted 30 running specialty accounts “from around the world at the Nike campus for a four-day immersion and our upcoming running innovations.”
On Holding’s Q2 Sales Jump 32 Percent
On Holding AG reported sales jumped 32.0 percent (38.2 percent in constant currencies) year-over-year to CHF 749.2 million ($928 mm). In constant currencies, sales increased by 23.6 percent in the Americas region, 46.1 percent in EMEA, and 101 percent in the Asia-Pacific region.
Footwear sales increased 36.0 percent year-over-year in constant-currency terms. On an analyst call, David Allemann, co-founder and executive co-chairman, said On is benefiting from its success “building iconic franchises,” led by the Cloudsurfer and Cloudmonster, with nine franchises each contributing over 5 percent to its sales.
“What we’re seeing is that we are no longer just for early adopters,” said Allemann. “We are now resonating with a much wider audience, from established runners to the very young.”
Martin Hoffmann, CEO and CFO, said On is holding onto its strong connection with runners, noting that running “remains the foundation of our brand, and it’s where our credibility is rooted.” He said On’s proprietary brand tracker has shown a significant increase in the brand’s connection with runners and its performance credibility.
“We also grew overall brand awareness faster than any other brand in our category,” added Hoffman. “This momentum will carry forward with the launch of the Cloudboom Max,” the brand’s first super shoe, that is being launched on August 21.
Saucony’s Sales Jump 42 Percent In Q2
Saucony’s global sales jumped 41.5 percent in the second quarter to $144.3 million with a 40-percent gain on a currency-neutral basis. The growth was supported by an additional ~400 doors in the lifestyle athletic specialty channel, bringing Saucony’s store count in that channel to about 1,300 doors.
However, Chris Hufnagel, president and CEO of Wolverine Worldwide, Saucony’s parent, said on an analyst call that “well less than half” of Saucony’s growth came from new door expansion, with the brand seeing broad-based growth across regions and channels. The gains were led by Wholesale performance in both the U.S. and international while DTC was up in low double-digits.
“There’s not just one thing driving the Saucony engine right now, which gives us a lot of confidence in where that brand is and certainly what that brand can be,” said Hufnagel.
Hufnagel said Saucony’s resurgence reflects an “ambitious strategic reset” for 2023 and 2024, which included scaling back its product offerings to core styles and finding success through innovation.
On the Performance side, Saucony’s core four franchises — Ride, Guide, Triumph, and Hurricane — grew at a “very strong double-digit pace at U.S. retail in the quarter,” said Hufnagel. The pinnacle Endorphin franchise saw a healthy response to the launch of the Endorphin Speed 5 following the March introduction of the Endorphin Elite 2 supershoe.
Saucony’s Lifestyle category growth particularly benefited from the additional 400 doors. Hufnagel said of the expansion, “While the opportunity is meaningful, we continue to take a methodical approach to thoughtfully expanding distribution.”
Other highlights in the quarter included the opening of a store on London’s Covent Garden, following its recent opening of its first flagship in Harajuku, Tokyo, as part of a “Key City” strategy. A third flagship will open in Paris next year.
Hufnagel said Saucony plans to make a “very large investment” behind its “Run As One” campaign to build on the momentum.
“Brand search interest is up meaningfully around the world compared to last year, and we’re seeing stronger affinity for the brand, specifically among runners and younger consumers,” he noted.
