New Balance Surpasses $9 Billion in Sales, Outpacing Nike’s Decline

New Balance has cemented its status as one of the sneaker industry’s fastest-growing brands, reporting a 19% sales increase to $9.2 billion in 2025. The Boston-based company achieved its fifth straight year of double-digit growth and is now targeting $10 billion in annual revenue by the end of 2026. The milestone comes as rival Nike reported a 9.8% revenue decline for its full fiscal year 2025, bringing its total to $46.31 billion.

Capitalizing on Nike’s Retail Misstep

Much of New Balance’s momentum can be traced back to a strategic error by Nike during the COVID-19 pandemic. Nike aggressively cut ties with wholesale retail partners to prioritize its own direct-to-consumer channels. This left significant gaps on store shelves that New Balance, alongside brands like On, Brooks, and Deckers, moved swiftly to fill. Nike’s internal pivot also coincided with a slowdown in product innovation, which further opened the door for competitors to gain ground.

New Balance responded to the same pandemic disruptions very differently — doubling down on research and development through its Boston sports research lab, focusing on new cushioning technologies and performance materials.

From ‘Dad Shoe’ to Cultural Icon

Once dismissed as a tired “dad shoe,” New Balance has successfully repositioned itself as a culturally relevant global brand. The company built an impressive athlete roster featuring baseball star Shohei Ohtani, tennis champion Coco Gauff, and NFL quarterback Josh Allen. The brand also opened 80 new stores globally in 2025, deepening its direct consumer relationships while maintaining strong wholesale partnerships — a balance Nike struggled to strike.

CEO Joe Preston summed up the brand’s philosophy simply: “We just want to show up great.”