New Balance’s UK arm saw its net profit jumping in 2024 with the company saying that the leap was driven by sales and margin growth across wholesale and direct to consumer channels “where both consumer demand and brand strength continue to increase”.
And it said there was a similar uplift in intercompany sales as the trend seen within the UK market was largely replicated across other subsidiaries. Although the full company name is New Balance Athletic Shoes (UK) Limited, it also sells its products to other markets.
So let’s look at the numbers. Turnover increased by 16.3% year on year from £882 million to £1.026 billion. It was the first time that sales had topped £1 billion.
And the accounts showed that during the year, UK-specific turnover rose from £265.6 million to £301.1 million, while it jumped from £606.3 million to £710.5 million in the rest of Europe. In the rest of the world, sales increased from £10.2 million to £14.4 million.
Meanwhile, the gross margin of 45.7% was a strong improvement against the 41.5% seen in 2023, mainly because of those increased DTC sales and supply chain efficiencies.
Operating profit jumped 19.5% from £152.69 million to £199.66 million following a pleasing 17.3% rise in the previous year. Profit before tax was also strong at £192.3 million, up from £148.25 million in 2023. And net profit surge from £114.43 million to reach £143.93 million.
The figures show it going from strength to strength despite the company having been loss-making on a pre-tax basis for quite a few years in the previous decade, only returning to profit in 2022.
There was no information about post-balance-sheet events, although the reopening of its Oxford Street, London flagship this summer (pictured) should provide a major boost to its UK turnover.
