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New Stability gross sales grew 19% final 12 months to $9.2 billion because the legacy sneaker large continued to outperform the worldwide footwear market and take share from floundering rivals like Nike.
The 120-year-old Boston-based footwear model, which is personal, completely shared its 2025 outcomes with CNBC. Along with the sharp 2025 progress, the retailer mentioned it may attain its aim of $10 billion in annual income by the top of the 12 months.
“We’re aggressive. No query about it. However we wish to guarantee that as we get there and surpass it, that the standard of our enterprise is at the start,” CEO Joe Preston informed CNBC in an interview. “We do not need empty energy right here. We wish to guarantee that we’re delivering upon the premise that we now have, which is to turn out to be a premium model. Over the previous 5 years, we have carried out precisely that across the globe.”
Jeremy Moeller | Getty Pictures Information | Getty Pictures
Since 2020, New Stability has grown gross sales by a staggering 180%, putting it amongst a handful of standout rivals that supersized their companies as Nike modified its enterprise mannequin and misplaced important market share.
In the course of the Covid-19 pandemic, Nike doubled down on its direct promoting technique that minimize off longtime wholesale suppliers so the sneaker large may develop via its personal web site and shops. Whereas the technique briefly boosted gross sales and promised increased margins, it opened up vital shelf area at strategic retailers that firms like New Stability, Brooks Working, On and Deckers rushed to fill.
With a lot deal with constructing out a direct promoting mannequin, which could be extra advanced than distributing to wholesalers, Nike additionally fell behind on innovation and misplaced its edge within the efficiency footwear market. That created additional alternative for rivals like New Stability.
Nike’s former CEO, John Donahoe, beforehand blamed distant work in the course of the pandemic for the retailer’s innovation slowdown, however Preston mentioned the worldwide disaster created a possibility for his staff to return collectively in methods they hadn’t beforehand to implement new methods.
“We met each Tuesday morning at 7:30 a.m., we nonetheless have that assembly weekly in the present day, and it allowed us to get on a worldwide offense … we got here out of Covid stronger than every other firm in our trade,” mentioned Preston. “{The marketplace} disruption that is been going down, the examples of Nike, certain, all that stuff is actual and on the identical time, I do not assume it is the explanation that we now have begun to emerge.”
Preston mentioned the corporate has stood aside from rivals and brought market share by specializing in “staying in entrance of the buyer” and the way, when and the place folks wish to store.
The chief govt mentioned New Stability’s progress got here throughout a spread of areas and classes, and was fueled by an aggressive store-opening plan that noticed 80 new doorways opened in 2025 alone.
Whereas they’re a vital income driver, retailer openings are pricey and take time to indicate a return. When requested, New Stability declined to share particulars about its profitability, so it is unclear how a lot these investments are weighing on its backside line, and whether or not it’s going to have the ability to sustain the excessive progress it has loved.
To construct up its enterprise after greater than 100 years in the marketplace, New Stability took a couple of cues out of Nike’s playbook. The corporate mentioned a key driver of its progress has been its capacity to place itself as a premium model, which was vital to Nike’s capacity to turn out to be a roughly $50 billion powerhouse.
That has meant New Stability being selective with each distribution and discounting. The transfer has allowed it to extend its common promoting worth by about 30% over the past 5 years at a time when many rivals have needed to lean on promotions to drive gross sales.
There was additionally some good timing at play, too. Popping out of the Covid-19 pandemic, New Stability leaned on its heritage as a Nineteen Nineties “dad shoe” when kinds from the ’90s have been extraordinarily well-liked with youthful buyers. That allowed it to win over a youthful client base that did not develop up with the sneakers and buyers who selected sneakers as a vogue assertion – not only for sports activities or understanding.
On the identical time, it partnered with key athletes, together with Los Angeles Dodgers two-way famous person Shohei Ohtani, tennis star Coco Gauff and Buffalo Payments quarterback Josh Allen, which has fueled progress in its efficiency footwear enterprise.
For the 12 months forward, New Stability mentioned it plans to develop its current product strains, construct out new merchandise and put an even bigger emphasis on efficiency gross sales.
It additionally needs to proceed rising its direct-to-consumer gross sales via retailer openings in strategic areas. Whereas the direct promoting technique did not go so properly for Nike, Preston mentioned he is taking a distinct strategy.
“One of many issues we’re not doing is establishing a [DTC] goal internally,” mentioned Preston. “We wish to guarantee that our aim is to indicate up one of the best and never have it’s the largest a part of our enterprise. I do not wish to get in the best way with how the buyer needs to buy. We wish to guarantee that we’re enabling the buyer to buy how they wish to store. We simply wish to present up nice.”
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