With both its wholesale accounts and licensed stores delivering robust growth this past Spring/Summer season, New Balance said last week that it's heading into fall with expectations of achieving $2.5 billion in global sales by 2013. In 2011, worldwide sales reached $2.04 billion, up 14.6 percent from $1.78 billion in 2010. The $2.5 billion 2013 assumes top-line growth will expand 22.5 percent over the next two years.
Reflecting strength in both its running and lifestyle footwear, New Balance's U.S. licensed stores have now seen increased year over year sales for the past 24 straight months. To date, overall licensed store sales have grown 10.5 percent in 2012.
“Achieving 24 months of same-store sales increases within the turbulent economic environment is very exciting,” said Chris Quinn, EVP, sales and retail for New Balance. “We can attribute much of this success to our best-in-class New Balance Store ownership group and our North American sales organization.”
New Balance also said it remains focused on driving strong sales momentum across the brand's other key distribution channels.
“We have great work to do as we strive to become the number one brand in Running and better collaborate to impact not just our New Balance market share, but our retailers' total athletic sales. We are committed to work more closely than ever with our specialty retailers as well as all of our strategic accounts and channels to earn their business and ensure we are the best possible, value-added, business partner,” says Quinn.
Looking ahead, Stephanie Smith, vice president of retail for New Balance, said the early read for Spring 2013 is “very positive.” She elaborates, “We have seen solid strength in sales of running product at our independent specialty accounts and bookings for running product in the specialty channel for the first quarter of 2013 are up 45 percent.”
Also contributing to brand's overall brand health is the continued focus on New Balance's “Let's Make Excellent Happen” brand campaign, as well as the strength of key running initiatives, including the launch of REVlite, a cushioning foam featured in the 890 running shoe, the NB Minimus collection and core running styles.
“We see our brand connecting more than ever with younger consumers, thanks to exciting new running products such as Minimus and REVLite as well as renewed interest in our lifestyle offerings such as the 574 and Made in the USA collections,” says Quinn. “Complementing our running product mix has been the New Balance's commitment to the high school athlete with our sponsorship of the New Balance Nationals as well as other key marquis running events.”
All 165 licensed New Balance stores in North America (148 in the U.S.) are independently owned and operated.