New Balance doubles sales in two years as profit jumps

The UK arm of New Balance has more than doubled its sales in the space of just two years as its profit jumped by more than £140m.

The Cheshire-headquartered division has posted a turnover of £882.1m for 2023, up from £679.7m in 2022 and £413.5m in 2021.

Newly-filed accounts with Companies House also show that New Balance went from making a pre-tax profit of £6.6m to £148.2m over the 12 months.

The latest results come after the business only returned to making a pre-tax profit in 2022, having not done so since 2014.

The division of New Balance reported UK sales of £265.6m, up from £160m, while it generated a turnover of £606.3m in the rest of Europe, a rise from £509m.

In the rest of the world, the division’s turnover dipped slightly from £10.6m to £10.2m.

During the year the average number of people employed by the company grew from 690 to 738.

New Balance investing in the UK

A statement signed off by the board said: “The year-on-year improvement was driven by sales and margin growth across wholesale and direct-to-consumer channels, where both consumer demand and brand strength continued to increase.

“There was a similar uplift in intercompany sales as the trend seen within the UK market was largely replicated across other subsidiaries.

“Despite the increase in intercompany sales, our intercompany receivables balances have reduced year on year due to subsidiaries settling their balances sooner.

“Cost base management alongside considered investment for growth continues to be a primary focus and as with previous years there was ongoing strategic investment in the UK, particularly in both the running and football categories.”

On its future, the business added: “New Balance continues to invest in strategic sports categories such as running, football, tennis and basketball to promote the brand’s athletic range, aligning with the brand’s objective in building a top three global athletic brand.

“The company continues to drive presence through direct-to-consumer channels as targets for these operations are aligned across both financial and commercial metrics to support growth.

“Within the UK, New Balance remains focused on promoting domestic manufacturing and continues to invest in research and development to create highly desirable footwear and sports clothing.”