In an impressive financial turn, New Balance’s UK division has seen a dramatic increase in both sales and profit over a brief span.
- New Balance’s UK sales surged to over £880m, with an annual pre-tax profit of £148.2m, marking a significant leap.
- The Cheshire-based division of New Balance saw sales exceed £265.6m in the UK, whilst European turnover also saw growth.
- Notably, the brand hasn’t seen such pre-tax profits since 2014, underscoring this financial achievement.
- Strategic investments in sports categories have cemented New Balance’s position and potential for further growth.
In a remarkable financial achievement, New Balance’s UK division reported a turnover of £882.1m for the year 2023, a dramatic rise from £679.7m in 2022 and £413.5m in 2021. This surge in sales marks a return to profitability, a status not held by the business since 2014, evidenced by the leap in pre-tax profits from a modest £6.6m to an impressive £148.2m within just 12 months.
The Cheshire-based division saw its UK sales reach £265.6m, up from £160m, reflecting a broader trend experienced across Europe where turnover rose to £606.3m from £509m. However, areas outside these regions saw a slight dip in turnover, declining from £10.6m to £10.2m. Despite these mixed results, the workforce expanded, with an increase in average employees from 690 to 738.
Board statements attribute the growth to enhancements in sales and margins across both wholesale and direct-to-consumer channels. The proactive strategies that have increased consumer demand and strengthened the brand underpin these improvements. Furthermore, the rise in intercompany sales echoed this pattern, highlighting strategic alignment across subsidiaries.
Prudent financial management remains paramount for New Balance, as highlighted by their continued investments in key sports categories such as running, football, tennis, and basketball. These efforts are in line with the brand’s ambition to establish itself among the top three global athletic brands, emphasizing the significance of regional manufacturing and development initiatives to boost consumer product desire.
Focusing on future growth, New Balance is steering its operations through robust direct-to-consumer strategies tailored to align with both financial and commercial goals. This approach seeks to maintain the momentum of the division’s recent success while aligning with global brand objectives and regional commitments.
New Balance’s strategic financial and operational initiatives have culminated in exceptional performance, setting a promising trajectory for future growth.
