Over two years, New Balance’s UK sales have more than doubled, with a significant profit increase.
- The UK division reported sales of £882.1m in 2023, rising from £679.7m in 2022 and £413.5m in 2021.
- Pre-tax profits escalated to £148.2m, marking a significant turnaround from past years of financial underperformance.
- Sales within the UK increased to £265.6m, with European sales also seeing notable growth.
- The company continues strategic investment in key sports categories, enhancing brand presence across markets.
The UK division of New Balance has experienced an extraordinary increase in sales, more than doubling over a short span of two years. This growth is underscored by the firm’s reported turnover of £882.1 million in 2023, compared to £679.7 million in 2022 and £413.5 million in 2021. Such figures reflect a strong upward trajectory, as highlighted by City AM.
In tandem with sales, New Balance’s pre-tax profits have surged from £6.6 million to £148.2 million within a year. This marks a significant return to profitability, exceeding a nine-year period without recording a pre-tax profit since 2014. The substantial profit growth signals a prosperous phase for the business.
The sales uplift was evident not just in the UK where revenues hit £265.6 million, but also across Europe, where turnover increased from £509 million to £606.3 million. However, regions outside Europe observed a marginal downturn, with sales slightly declining from £10.6 million to £10.2 million.
New Balance’s workforce expanded, reflecting the brand’s development and market ambitions. The average number of employees rose from 690 to 738. A board-approved statement attributed year-on-year improvements to increased sales and margin growth in both wholesale and direct-to-consumer channels, bolstered by rising consumer demand and brand strength.
Strategically, New Balance emphasised managing costs while investing for growth, committing to the running and football categories in particular. The company plans to focus on strategic sports categories including running, football, tennis, and basketball to align with its goal of becoming a top three global athletic brand. Notably, efforts are being made to enhance direct-to-consumer reach, with these operations strategically targeted to stimulate growth. Within the UK, the company’s focus remains on promoting domestic manufacturing and investing in research and development to create innovative footwear and sports apparel.
New Balance’s strategic growth and investment in key areas have significantly bolstered its UK market position and profitability.
