Europe‘s opening more doors as it becomes the next growth frontier for some American running brands that are already a hit with the U.S. consumer.
Hoka, for example, has opened doors in Berlin, Milan, and Chamonix in Southeastern France. Deckers president and chief executive officer Stefano Caroti, who previously told investors that Chamonix is the birthplace of the brand, said “EMEA (Europe, Middle East and Africa) delivered robust wholesale sell-through and another quarterly record [in Q2] for reorders,” while international DTC (direct-to-consumer) continued to generate exception revenue growth across Europe.
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Caroti said that while the brand has seen some timing differences in Europe, “the demand continues to be robust across all markets.”
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The CEO noted that even though the consumer in Europe is more pressured than its U.S. counterpart due to higher energy prices, “we’re holding our own. And even in times of challenge, what I’ve experienced is consumers gravitate to premium brands and brands that make them feel good. So we anticipate having a great year in Europe.”
At Brooks Running, the company on Wednesday said first half revenue growth was 14 percent, with demand for the performance running brand’s footwear, apparel, and accessories remaining “strong across regions and channels.” The brand’s big revenue growth area was EMEA, where it was up 39 percent for the half.
Brooks CEO Dan Sheridan said the running continues to play an increasingly important role for people around the globe who are prioritizing health and wellness in their lives. “At Brooks, we aim to give runners the very best product and experiences to pursue that. Our first-half results reflect that focus and the incredible work of our teams globally,” Sheridan said.
In terms of individual markets, Brooks “outpaced” the performance running footwear market in France, which grew 11 percent in the second quarter. Brooks also remained No. 1 in Germany in adult performance running footwear priced at a minimum of 90 euros. Data points were based on estimates and retail tracking statistics from Circana.
Brooks also expanded its European presence when it showcased its approach to lifestyle footwear in June during Paris Fashion Week through its RE: Innovation Studio, a space that highlighted the brand’s approach to movement beyond run. Glycerin 12 was reimagined through modern performance innovation, including the brand’s proprietary Loft V3 cushioning and 5D Fit Print upper. And it also featured the reinvention of one of its oldest shoes, the Brooks Vanguard, pairing a low-profile 1970s silhouette with Loft V2 cushioning.
Also growing its European presence is Saucony, one of the two big growth stories — the other is Merrell — under the Wolverine Worldwide Inc. umbrella. Wolverine CEO Chris Hufnagel said Thursday during the company’s second quarter earnings call that revenue at Saucony was up 9 percent. He described the brand as “uniquely positioned” as a challenger brand at the intersection of market performance and lifestyle running, the two fastest growin categories.
Saucony’s global growth story is boosted by its key city strategy, which began in London a few years ago, followed by France. The brand has since expanded to Berlin recently.
Hufnagel also noted that search interest growth rate more than tripled in the U.K., while France grew at an even “significantly faster pace.” And he noted that sell-through trends in EMEA “are also very strong, creating a healthy pull dynamic which we are actively managing to cultivate sustainable growth, focusing on disciplined distribution and segmentation strategies.”
