"New Balance has turned its "dad shoe" image into a driver of growth. According to a recent CNBC report, New Balance sales were up 19% to $9.2 billion in 2025. The sneaker giant grabbed market share from rivals like Nike, per the report. New Balance told CNBC that it could reach its target of $10 billion in annual revenue by the end of 2026."
"New Balance is growing faster than Nike. For the full fiscal year 2025, Nike reported total revenue of $46.31 billion, a 9.8% decline from the prior year. In contrast, New Balance achieved its fifth consecutive year of double-digit growth in 2025. "We're competitive," New Balance CEO Joe Preston told CNBC in an interview. "No question about it. But we want to make sure... that the quality of our business is first and foremost.""
"New Balance has increased sales by 180% since 2020, per CNBC. During the COVID pandemic, Nike aggressively pivoted to direct-to-consumer, cutting long-time wholesale partners to prioritize its own stores and e-commerce. The move initially boosted margins, but it left empty shelves at retailers that rivals raced to fill. New Balance, Brooks, On and Deckers quickly expanded into that space. Nike's focus on building out its direct infrastructure also coincided with a lull in product innovation, particularly in performance footwear."
New Balance grew sales 19% to $9.2 billion in 2025 and aims for $10 billion in annual revenue by the end of 2026. The company recorded its fifth consecutive year of double-digit growth and increased sales 180% since 2020. New Balance gained market share as competitors like Nike pivoted to direct-to-consumer, cutting wholesale partners and leaving retail gaps that rivals filled. Nike experienced a revenue decline and a lull in product innovation, while New Balance accelerated product development during the pandemic. The company recruited athletes to build credibility with younger consumers and transformed its "dad shoe" image into a growth driver.
Read at Entrepreneur
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