Berkshire Hathaway ( BRK.A ) property Brooks Sports broke annual sales records with a global revenue tally of $1.2B. Direct-to-consumer sales were up 16% for the year and total sales rose 6%. Brooks noted it overcame economic and supply chain headwinds to gain new customers across all categories including running, walking, hiking, and more. The retailer recorded 26% sales growth in Q4 to start off 2023 with a running start.
"As we head into the new year, we’re positioned for continued growth in multiple fitness and outdoor performance categories," noted CEO Jim Weber.
BTIG analyst Janine Stichter believes the strength at Brooks suggests overall healthy momentum in the running category and reinforces a broader trend of smaller players capturing share from larger industry incumbents such as Nike ( NKE ) and Adidas ( OTCQX:ADDYY ).
"We see a similar dynamic taking place at DECK's HOKA brand. Further, the ability for Brooks to achieve revenue levels similar to HOKA's (LTM revenue of $1.3B) suggests a long runway ahead for HOKA, as we see HOKA as being more diversified across product category and geography.'
Deckers Outdoor Corporation ( NYSE: DECK ) cruised past consensus estimates with its Q4 earnings report.
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Strong results for Berkshire property Brooks Sports said to bode well for Deckers Outdoor