New Balance UK Reports Record Profit Growth Amid Rising Consumer Demand
Published
October 6, 2025
In a significant financial turnaround, New Balance’s UK division has reported a remarkable increase in net profit for the fiscal year 2024. The company attributes this surge to robust sales and improved margins across both wholesale and direct-to-consumer (DTC) channels, reflecting a growing consumer appetite and enhanced brand strength.
Record-Breaking Sales Figures
New Balance Athletic Shoes (UK) Limited, a subsidiary of the global footwear and apparel brand, announced that its turnover soared by 16.3% year-on-year, climbing from £882 million to an impressive £1.026 billion. This marks a historic milestone for the company, as it is the first time sales have exceeded the £1 billion threshold.
The financial report highlights a notable increase in UK-specific turnover, which rose from £265.6 million to £301.1 million. Meanwhile, sales in the broader European market surged from £606.3 million to £710.5 million, and international sales outside Europe also saw growth, increasing from £10.2 million to £14.4 million.
Strong Margins and Profit Growth
The company’s gross margin improved significantly, reaching 45.7%, up from 41.5% in 2023. This enhancement is largely attributed to the rise in DTC sales and greater efficiencies within the supply chain. Operating profit also saw a substantial increase of 19.5%, rising from £152.69 million to £199.66 million, following a 17.3% increase in the previous year. Profit before tax climbed to £192.3 million, up from £148.25 million in 2023, while net profit surged from £114.43 million to £143.93 million.
These figures are particularly noteworthy given that New Balance had struggled with pre-tax losses for several years in the previous decade, only returning to profitability in 2022. The company’s recent performance underscores a significant turnaround, showcasing its resilience and adaptability in a competitive market.
Market Trends and Consumer Behavior
The growth in New Balance’s sales can be contextualized within broader market trends. The athletic footwear and apparel industry has seen a surge in demand, driven by a growing emphasis on health and fitness, particularly in the wake of the COVID-19 pandemic. Consumers are increasingly seeking high-quality, stylish athletic wear, and New Balance has successfully positioned itself to meet this demand.
The brand’s commitment to innovation and sustainability has also resonated with consumers. New Balance has made strides in incorporating eco-friendly materials into its products, appealing to environmentally conscious shoppers. This alignment with consumer values has likely contributed to the brand’s strengthened market position.
Expansion and Future Prospects
Looking ahead, New Balance is poised for further growth. The reopening of its flagship store on Oxford Street in London this summer is expected to provide a significant boost to its UK turnover. This location, known for its high foot traffic and visibility, is likely to attract both local shoppers and tourists, enhancing the brand’s presence in one of the world’s premier retail destinations.
Moreover, the company’s strategy to expand its DTC channels aligns with current retail trends, where brands are increasingly focusing on direct engagement with consumers. This approach not only enhances customer loyalty but also allows for better control over brand messaging and pricing.
Conclusion
New Balance UK’s impressive financial results for 2024 reflect a successful strategy that capitalizes on rising consumer demand and brand strength. With record-breaking sales and improved profit margins, the company is well-positioned for continued growth in the competitive athletic footwear market. As it navigates the evolving landscape of retail, New Balance’s commitment to innovation and sustainability will likely play a crucial role in its future success.
