Brooks® Sports Surges with Banner Business Year
Sixth Year of Double-Digit Growth Begets 24% Backlog Increase
Bothell, Wash. – March 13, 2008
Brooks Sports, Inc.—comprised of Brooks® and Moving Comfort®—delivered a record year of revenue, gross margin, profitability, and return on capital in 2007. This marks Brooks' sixth consecutive record year following a strategic product and distribution refocus and leadership team shift that occurred in 2001—a move that has resulted in tripling the company’s size.
In 2007, Brooks Sports grew overall brand sales revenue more than $30 million, or 17.5 percent, to more than $170 million. Domestic revenue saw a 20-percent jump relative to 2006, while international business pulled in an annual revenue increase in excess of 19 percent. Additionally, the company delivered record operating earnings in 2007, up 39 percent versus 2006.
Brooks conducted 76 percent of its 2007 domestic business in the specialty running retail channel. Sports Marketing Surveys estimates the specialty running market grew 6 percent in pairs and 8 percent in retail dollars in 2007. Brooks’ footwear market share increased one point for the third consecutive year to 19 percent, strengthening the brand’s No. 2 position in this critical retail channel.
According to Leisure Trends, which began publishing data on the specialty running market in April 2007, at the close of last year Brooks ranked No. 2 in apparel market share with 13.6 percent in units. Include sister brand Moving Comfort—a women’s-only performance apparel brand lauded for its technical sports bras—and Brooks Sports, Inc. collectively claimed 18.2 percent apparel market share in specialty running, second only to Nike.
"We had a lot of fun in 2007 focusing on delivering top-notch products, efficient operations, and the best service you’d find the world over," said Jim Weber, president and CEO of Brooks Sports, Inc. "Our team is enthusiastic about the year ahead, our potential growth, and the positive impact we can bring to our partners and consumers."
Following are additional 2007 business highlights for Brooks:
- "At Once" fill-in order trends, an indicator of retail sell-through of products, drew a 21-percent domestic increase over 2006.
- For the tenth consecutive season, Brooks was ranked No. 1 by Sports Marketing Surveys last fall for in-house customer service and product delivery in the specialty running channel.
- For the second consecutive season, Brooks was ranked No. 1 last fall in Sports Marketing Surveys’ Dealer Confidence Index, which measures specialty running retailers’ overall impressions of each brand and the company it represents.
- The Adrenaline GTS became Brooks’ first footwear style to sell more than 1 million pairs in a year, a significant milestone for a brand Brooks’ size.
After its first full year of operation under the Brooks Sports, Inc. umbrella, Moving Comfort reports these additional 2007 business highlights:
- Domestic sales revenue saw an 18-percent jump relative to 2006.
- Moving Comfort shipped more than 700,000 sports bras in the U.S. in 2007; the brand experienced a 30 percent increase in sports bras invoiced relative to 2006.
- Within Fleet Feet stores, Moving Comfort experienced 30-percent growth over 2006 to become the No. 2 apparel brand closing in on Nike.
- Moving Comfort unveiled its new logo and began the process of rebranding via new hangtags, in-store fixtures, business collateral, catalogs, and more.
Momentum into 2008 remains solid for both brands, particularly in light of retailer caution regarding the economy. For the balance of the year as of March 9, 2008, Brooks’ business posted a 24-percent future order backlog increase, lead by an International gain of 42 percent. Worldwide future order backlog for Brooks and Moving Comfort combined was up 18 percent compared to last year at the same time.
Driving future orders are Brooks’ and Moving Comfort’s product pipelines, which continue to improve and attract new customers. In addition to six brand new shoes, updates to favorite styles, and a highly anticipated foray into kids’ performance footwear, this year Brooks will launch the Trance™ 8 with BioMoGo, the first biodegradable midsole. BioMoGo breaks down in an enclosed landfill in about 20 years—rather than up to 1,000 years for traditional athletic shoes—all while maintaining the performance of Brooks’ MoGo midsole. Meanwhile, in 2008 Moving Comfort will launch five new sports bra styles and bring to market a complete redevelopment of its entire performance apparel collection.
Brooks is a leading running company that designs and markets a line of performance footwear, apparel, and accessories in more than 40 countries worldwide. A subsidiary of Berkshire Hathaway Inc., Brooks was founded in 1914 and is headquartered in Bothell, Wash., near Seattle. The company’s mission is to inspire everyone to run and be active by creating innovative gear that keeps them running longer, farther, and faster. Visit www.brooksrunning.com for more information.
About Moving Comfort
Established in 1977 with the first women’s running short, Moving Comfort designs and delivers performance apparel, sports bras, and accessories that support and inspire women to get fit, be healthy, and achieve their own unique personal bests. Headquartered in Bothell, Wash., Moving Comfort is a division of Brooks Sports, Inc. Visit www.movingcomfort.com for more information about Moving Comfort Sports Bras and Apparel. A Fit Woman is a Powerful Woman!® Spread the Word.