Episode summary
Berkshire-Owned Brooks Running Sees Another Record Year | Bloomberg Businessweek
Bloomberg Businessweek Daily
· · Hosts: Carol Massar, Tim Stenovec · Guests: Dan Sheridan
Summary
Brooks Running says 2025 was a record year, with Dan Sheridan telling the hosts the company grew 16% as participation in running and walking stayed strong. He argued that Brooks is winning because its consumers keep prioritizing shoes and apparel even when they cut back on other discretionary spending, and he described the business as healthy across the U.S. and abroad.
Sheridan said supply chains have normalized over the last four or five months, though tariffs remain a major headwind and will likely compress profitability. He said Brooks has worked through the issue across the value chain and now feels in a solid position, even as trade policy continues to shift.
China is a major growth story, with Sheridan saying sales there rose 245% in 2025 and the company plans 30 stores by 2027. He said Brooks is resonating with the growing Chinese middle class through performance products, community engagement, and an expanding store base, while Europe also remains important, including Brooks’ position as the number one performance run brand in Germany. Sheridan also emphasized Berkshire Hathaway ownership as a strategic advantage that lets Brooks think in 10- and 20-year horizons.
Key takeaways
- Dan Sheridan said Brooks grew 16% in 2025 and called it a record year, with participation in running still driving demand.
- Sheridan said Brooks’ tariffs are “extremely high” in this category and expects some profitability compression even after working through the value chain.
- He said China sales rose 245% in 2025 and Brooks still plans 30 stores there by 2027.
- Sheridan said about 80% of Brooks’ global revenue comes from the U.S., but Europe and China are major expansion markets.
- He argued Brooks wins by focusing on biomechanics, operational execution, and an authentic runner-focused brand.
- Sheridan said Berkshire Hathaway ownership gives Brooks a long-term horizon that competitors do not have.
Notable quotes
“our consumer is very very healthy right now and it's rooted in the participation which we've talked about in the past”
“our tariffs are are extremely high for this category and so we went to work on that”
“China sales in 2025 for your company up 245%”
“We're so fortunate to be owned by Bergkshire and and more importantly um you know I as a CEO have a very long time horizon”
How the episode opens
Bloomberg Audio Studios podcasts, radio, news. — You're listening to Bloomberg Business Week with Carol Masser and Tim Stenc on Bloomberg Radio.
All right, we want to get a look at the consumer and the ever popular world of athleisure. When I'm not wearing this, I'm often in yoga pants. Uh, and also workout clothing.
Hey, we want to do this with the CEO, Brooks. Uh this has the latest data on the US labor market showed US job openings unexpectedly falling in the month of December to the lowest level since 2020. Layoffs edging up adding to evidence of sluggish demand for workers.
And then we also had US companies announcing the largest number of job cuts for any January since the depths of the great recession back in 2009. That's according to the outplacement firm Challenger Gray in Christmas. So a lot to get to with our next guest.
We do welcome back Dan Sheridan. He is CEO of Brooks Running, the Seattlebased subsidiary of Warren Buffett's Brookshire Hathway. Dan, how are you?
Hi, Carol. Thanks for having me back. Happy to be here. — It's great to have you here with Tim and me. Um, lots to get to. We're going to get to it. I got to say with the backdrop of markets though and some nervousness out there and Bitcoin's continued slide. I got to ask you about the macro and I got to ask you is does anyone buy your sneakers with Bitcoin or crypto?
I think if they do, it's a very small percentage. You know, I think for us, um, we just finished our our 2025 year and and we grew 16%. So, our consumer is very very healthy right now and it's rooted in the participation which we've talked about in the past.
From the episode’s captions: roughly the first two minutes, lightly cleaned. Keep watching on YouTube →
Topics
- brooks running earnings
- record year
- consumer sportswear
- berkshire hathaway subsidiary
- performance footwear
Companies and tickers mentioned
- BRK-B
- BRK-A
- Brooks Running
- Berkshire Hathaway Inc.
Watch the episode
Watch “Berkshire-Owned Brooks Running Sees Another Record Year | Bloomberg Businessweek” on YouTube
Summary, takeaways and quote selection by Octagon. Quotes are short excerpts; the full conversation is in the episode.
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