New Balance Turned ‘Dad Shoes’ Into $9.2 Billion in Sales, Outpacing Nike. Here’s What’s Behind Their Epic Run.
Key Takeaways
- New Balance grew sales 19% to $9.2 billion in 2025 and is now targeting $10 billion in annual revenue.
- The sneaker giant achieved its fifth consecutive year of double-digit growth in 2025, ahead of rivals like Nike.
- To gain credibility with younger fans, New Balance has recruited athletes to represent its brand.
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.
“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 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.
Beating Nike where it stumbled
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. Former CEO John Donahoe blamed remote work during the pandemic as a drag on collaboration and creativity.
New Balance experienced the same disruption but responded differently. The company used the pandemic as a catalyst to accelerate product innovation. For example, the brand doubled down on research and development, leaning on its Boston sports research lab to test new cushioning foams and materials.
From niche “dad shoe” to global power
New Balance is synonymous with the “dad shoe.” To gain credibility with younger fans, New Balance has recently built a roster of athletes to represent its brand. The company now partners with Shohei Ohtani, a baseball star; Coco Gauff, a Grand Slam tennis champion; and Josh Allen, an NFL quarterback, among others. The approach borrows from Nike’s playbook of using elite athletes as brand ambassadors.
Preston said New Balance has differentiated itself from competitors by “staying in front of the consumer.” The company is on top of how and where people want to shop. To that end, New Balance opened 80 new stores globally in 2025 to deepen its direct relationship with customers.
“We want to make sure that we are enabling the consumer to shop how they want to shop,” Preston told CNBC. “We just want to show up great.”
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