Podcast consensus

Points of consensus

▶All sources report that Brooks Running's sales in China grew by 136% year-over-year in the first quarter of 2026.May 2026

▶Multiple sources confirm that Brooks Running's global revenue grew 23% in Q1 2026, with its global apparel business growing 34%.May 2026

▶The company has maintained a 14% compounded annual growth rate over the past 25 years, a point reiterated across several discussions.May 2026

▶The Glycerin, Ghost, and Adrenaline shoe models are consistently cited as being among the top 10 best-sellers in both the United States and Europe.May 2026

Points of debate

▶There is a contrast between the explosive 136% growth in the Chinese market and the acknowledgment that this market still represents a small percentage of the company's overall business.May 2026

▶The company reports exceptionally strong double-digit growth across all regions while simultaneously anticipating significant cost increases for raw materials and logistics due to severe supply chain disruptions.May 2026

▶The CEO expresses confidence in the running category's historical resilience to economic downturns, which is juxtaposed with his description of current supply chain challenges as being on par with the severity of the COVID-19 pandemic and US-China tariffs.May 2026

▶While the company has not observed any signs of consumer weakness, it is actively facing major external pressures from supply chain and logistics costs, suggesting a potential future conflict between consumer demand and profitability.May 2026

Key themes

▶Explosive International and Segment GrowthMay 2026

Brooks Running is experiencing a period of significant expansion, particularly in its international markets. The company reported 136% year-over-year growth in China for Q1 2026, 30% growth in Europe, and 20% in the U.S., achieving double-digit growth across all geographic regions. This growth extends to its product lines, with the global apparel business expanding by 34%.

The massive growth in China, a market entered only in 2022, signals a significant new revenue vector, though its current small base means its overall impact on the company's total revenue is still developing.

▶Sustained Long-Term Performance and Market LeadershipMay 2026

Beyond recent quarterly success, Brooks Running has demonstrated remarkable long-term consistency, maintaining a 14% compounded annual growth rate over the past 25 years. This performance is supported by strong product-market fit, with core models like the Glycerin, Ghost, and Adrenaline consistently ranking as top-10 best-sellers in the key U.S. and European markets.

This long-term track record suggests a durable brand and business model that can weather market cycles, a key attribute for its parent company, Berkshire Hathaway.

▶Navigating Severe Supply Chain HeadwindsMay 2026

Despite strong sales, the company is facing significant operational challenges. The CEO anticipates cost increases for both raw materials and logistics due to ongoing supply chain disruptions. These disruptions are considered to be on par in severity with the major economic shocks of the COVID-19 pandemic and US-China tariffs.

The severity of these headwinds could pressure margins and profitability in the coming quarters, testing the company's ability to pass on costs or find efficiencies without dampening consumer demand.

▶Market Resilience and Favorable Consumer TrendsMay 2026

The company's leadership believes the running category is historically resilient to economic downturns and is not currently showing signs of consumer weakness or pullback. This is bolstered by broader societal trends, such as the 'casualization of the workforce,' which expands the use-case for its products beyond dedicated running.

This perceived insulation from economic downturns, combined with beneficial cultural shifts, provides a defensive moat for the company, suggesting demand may remain robust even if macroeconomic conditions worsen.

Source episodes

Timeline

c. 2001-2026

Brooks Running establishes a 25-year track record of consistent growth, achieving a 14% compounded annual growth rate.

2022

The company strategically enters the Chinese market, which is noted to be a small but high-growth segment of its business.

Pre-Q1 2026

The company begins to face severe supply chain disruptions, with the CEO later comparing their severity to the impacts of the COVID-19 pandemic and US-China tariffs.

Q1 2026

Brooks Running reports a period of exceptional growth, with global revenue up 23%, driven by 136% growth in China, 30% in Europe, 20% in the U.S., and 34% in its apparel division.

Post-Q1 2026

Following a strong quarter, the company's leadership publicly anticipates continued cost increases for raw materials and product transportation due to the persistent supply chain issues.

Suggested prompts

How sustainable is the 136% growth rate in China, and what is the strategy to increase its small share of the company's overall business? &nearr;What specific strategies is Brooks implementing to mitigate the severe supply chain disruptions and anticipated cost increases for materials and logistics? &nearr;Given the 14% CAGR over 25 years, what are the key drivers of this long-term consistency, and can they be maintained amidst current economic headwinds? &nearr;How does the 34% growth in the apparel business compare to the footwear business, and what is the long-term vision for this segment? &nearr;

Key concepts

Q1 2026 Financial Performance 4 ep China Market Growth 4 ep Apparel Business Growth 4 ep European Market Growth 3 ep US Market Growth 3 ep Long-Term Growth (CAGR) 3 ep Best-Selling Shoe Models 3 ep Supply Chain Disruptions 2 ep Market Resilience 2 ep Marketing Strategy (Disney) 2 ep

Notable quotes

“Brooks Running entered the Chinese market in 2022, and it currently represents a small percentage of the company's overall business.”

Dan Sheridan · Brooks Running CEO Dan Sheridan Talks Running Shoes | Bloomberg Talks

“The CEO of Brooks Running believes the current supply chain disruptions are on par in severity with those caused by tariffs and the COVID-19 pandemic.”

Dan Sheridan · Brooks Apparel 'Resonating' With Chinese Runners, Says CEO Dan Sheridan

“The Glycerin, Ghost, and Adrenaline shoe models from Brooks Running are among the top 10 best-selling running shoes in both the U.S. and Europe.”

Dan Sheridan · Brooks Apparel 'Resonating' With Chinese Runners, Says CEO Dan Sheridan

“Brooks Running's global business grew 23% in the first quarter of 2026.”

Dan Sheridan · Trump Bemoans Iran Talks, Magna CEO Talks News Trump Tariffs | Bloomberg Businessweek Daily 5/1/2026

Report last updated: May 4, 2026

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