Berkshire Hathaway-owned Brooks Running is headed for $2 billion in revenue and to maintain its strong growth plans a major expansion in China.
High-end running shoe manufacturer Brooks Ghost aims to have 30 stores there by 2027after opening its first location in China this year.
“Running is a booming activity in China,” said Dan Sheridan, CEO of Brooks. In China, “they are investing in health and well-being. They are building infrastructure for people to move.”
Brooks, based in Seattle and acquired by Berkshire in 2006, has increased its sales 17% so far this year (three quarters). This growth has been driven by a more than 80% increase in its Asia Pacific and Latin America segment.
Like other shoe companies, Brooks has also had to deal with US tariffs on imports. Sheridan said the company has been protecting consumers to avoid losses, but will raise prices next year.
“Tariffs are only now beginning to impact the cost of our products,” Sheridan said. The company will increase prices on some products by 2% to 3% in 2026. Sheridan said he expects the running boom of recent years to continue. This sport has been boosted by its consolidation as a social activity for many, with a rapid increase in the number of running clubs. That kind of connection was on full display Sunday at the New York City Marathon, where more than 50,000 runners will participate.
Brooks is not an official sponsor of the race, but it has a marketing plan that includes the participation of Broadway star and Brooklyn native Anthony Ramos, who ran his first marathon with the Brooks brand.
One of the keys to the brand’s success has been winning over buyers through specialty stores and personal recommendations. It doesn’t have the marketing budgets of big shoe companies like Nike.
Take Nicole Jordano for example. This 36-year-old athlete ran her fourth New York Marathon and wore Brooks shoes. She switched to this brand in 2019 after a series of stress fractures led her to consider a change.
“Like many beginning runners, at first I loved all the shoe models that Nike put out,” Jordano said. After trying different models, insoles and other temporary solutions, I still couldn’t find relief. It wasn’t until a physical therapist recommended Brooks.
“I haven’t had any stress fractures since,” said athlete Nicole Jordano.
