2025, eTail Boston. Fireside Chat: Lacing Up for the Next Era of Growth: Winning Retail Strategies with New Balance

Moderator: Jill Manoff, Editor in Chief, Glossy & Modern Retail: Yes. We're excited to dig into that. We're gonna talk a lot about your sports partnerships.

Jill Manoff, Editor in Chief, Glossy & Modern Retail: We saw a lot of sports in that video. Yeah. But to kick it off, new balance is killing it. Yeah. You got some ambitious growth goals. Your outpacing the goals. Yep. In terms of, yeah. The timeline. Tell me about what's fueling all of that. What do you owe that to?

Melissa Worth, SVP Americas, New Balance: Yeah, it's it's been an exciting journey for New Balance.

We finished 2024 with. 20% growth, which is the fourth year in a row that we've had 20% growth at around $7.8 billion in global revenue. And so we continue to just be on this really fantastic trajectory and, we're doing what we can to ensure that it's sustainable growth and Right. We're in it for the long term because that's what we really believe as a brand.

We're 119 year old private company, which allows us. To do, have some longer term visions, I think, than maybe some of our competitive set in that sense. But yeah, we've done a great job really putting ourselves in front of that gen Z, that younger consumer. And our new consumer acquisition is what is fueling our growth.

Okay, great. And largely the younger consumer? Largely the

Moderator: Jill Manoff, Editor in Chief, Glossy & Modern Retail: younger consumer, yes. Nice. Yes. As you're doing going gangbusters what are some challenges? Like what's the biggest challenge you're facing today?

Melissa Worth, SVP Americas, New Balance: I think we're all, the macroeconomic environment is certainly top of mind, in terms of what's happening there. And not only impacting. Things in this market. We are a pretty big global company. We do about 40% of our business here and 60% globally. We're seeing the consumer affected, in other areas as well. And, the brand is really strong.

So we're still seeing that, really great trajectory. But, the consumer I think is being more choiceful. Yep. In terms of where they spend their dollars and when they spend their dollars really coming out, at the peaks of. Commercial activity and, waiting to buy and buying what they really want.

We feel we're in a strong place right now because what they want is new balance. So we feel good about that. But yeah, to be determined as things, these tariffs take effect in what happens in the back half of this year and into 26.

Moderator: Jill Manoff, Editor in Chief, Glossy & Modern Retail: Yeah, definitely. I would say you are as you're tackling the new opportunities, you're really tackling new innovations.

Jill Manoff, Editor in Chief, Glossy & Modern Retail: You're definitely a pioneer or a front runner on the cutting edge, I would say. Yeah. You have this DNA, you've got this history and this audience that has known and loved you for years. Yeah. Like how do you weigh that? What we go for, where we lean in while retaining that I guess vibe the brand.

Melissa Worth, SVP Americas, New Balance: Yeah, it's a great, it's a great question and I think that one of the keys to our success is really how. Deliberate. We've been about like our brand positioning and we talk a lot internally about wanting to be at the intersection of sport and culture. Knowing that's where that, consumer really lives and how we as an athletic brand bring sport and culture together.

Also really being clear that we need to bring it to life through the authentic lens of New Balance, and what does that mean for us? And so we view ourselves, as a challenger brand. And so as we bring things to market, right? Whether that's products. How we're putting the products into the market, our marketing campaigns, our athletes, and our ambassadors, we really ensure that we're doing it through, the lens of authenticity.

Because the consumer certainly recognizes when you're authentic and when you're not as a brand, as well as the intersection of sport and culture. And being that. Er brand and, our brand president Chris Davis talks a lot about wanting new balance to be the most, premier sports boutique brand in the world.

And that's our vision that we're striving for.

Moderator: Jill Manoff, Editor in Chief, Glossy & Modern Retail: I love that. People, that's what you're known for. I would say the sports connection and maybe your ambassadors. There's. People are coming into your territory left and right. What would you say is unique about your sports partner, your athlete partnerships, your ambassadors?

Melissa Worth, SVP Americas, New Balance: Yeah, so we have as a brand, we probably have north of 600 athletes and ambassadors that we partner with, and we're really deliberate about who those partners are, and we really use the word partner versus the word sponsor. And we make that distinction really deliberately. So you know, a partner with New Balance.

Means just that, right? There's a long-term partnership. There's joint goals. There's joint values, which is really important to us as a brand. And it's meant to be a long-term partnership, right? So not a flash in the pan that we're paying someone to promote the product, but really, how are we building this vision together?

And, you see our athletes and ambassadors, really. Involved in, in, in how they're curating, what they want to bring to life through the new balance lens. In the video, this is a good example, Coco Goff, she has been with New Balance since she was 14 years old.

And so she's obviously incredible tennis player, really achieving so much on the global stage now. And this, you saw in the video and a few months ago we released the Coco Delray tennis shoe and that's her tennis shoe, she's from Delray, Florida. When we put the ad out to promote the shoe, it is her grandmother that's doing the voiceover, in the background and her family.

That's a part, of that. So it just speaks to, really, and she was, really specific about how she wanted some of that to come to life. So it's bringing together the values that we stand for. As a private family owned organization, aligned with her family, the long-term partnership together.

And also putting sort of these these stories. And again, back to that authenticity behind the product and behind what we're doing together, so that the consumer really does see that we're standing together for a reason.

Moderator: Jill Manoff, Editor in Chief, Glossy & Modern Retail: Yes. Coco Tennis, are there certain teams or sports that you're really leaning into now and connecting with?

Jill Manoff, Editor in Chief, Glossy & Modern Retail: Or for any rhyme or reason?

Melissa Worth, SVP Americas, New Balance: Yeah, I think that as we've grown as a brand it's enabled us to, make investments back into the brand and look at, how are we. Really showing up, within all of the different sports and there's so many globally, right?

Yeah. You look at what's important in one market is not necessarily the most important sport in another market, we really have a best in class strategy in terms of the best athletes in the world. Where New Balance. And so that's where you see someone like a Shhe Otani, right?

Wearing New Balance. So instead of going after a team, we're really going after those. Athletes that resonate with the brand, that can be on the world stage, wearing new balance and supporting what we mean. And so as we grow, we are constantly looking at, what are the different categories that we need to gain market share in as an athletic brand or need to show up better.

And so one of the newer categories that we're getting into is American football. Oh, cool. Yeah. And so we're really excited about that. So look for some really. Exciting news to come in the fall season around that category. But, it's a great, that's a place where, we see our consumer really engaged and is on, quite a big stage, especially, in the, in this market.

And we'll be great for the brand.

Moderator: Jill Manoff, Editor in Chief, Glossy & Modern Retail: Yes. We're gonna see them in the tunnel wearing the shoes maybe. Yeah.

Melissa Worth, SVP Americas, New Balance: And I think too, as we work with all of these athletes, one of the things that we, and if anyone you know, as you're in Boston, I encourage you our campus is 15 minutes, down the Mass Pike this way.

And on the campus we have a state-of-the-art track and field center and a state-of-the-art sports innovation lab where we bring in these athletes and really ensure that, we are developing the product that they need to compete and win on the world stage in. And a lot of that is.

Really based on, the vet on what New Balance is known for in terms of the quality and the craftsmanship and the comfort. Yeah. And so that's where we're finding our differentiation point, versus our competitive set that these athletes are really gravitated towards our product.

Moderator: Jill Manoff, Editor in Chief, Glossy & Modern Retail: I wanna go. That sounds amazing. Yeah. Yeah. Yes. So when it comes to, maybe you talked about the value of the athlete being a partner, but when it comes to choosing an athlete partner you're gonna maybe work with an NFL player, like who makes a fitting partner and how do you ensure that authenticity?

Jill Manoff, Editor in Chief, Glossy & Modern Retail: Authenticity, yeah.

Melissa Worth, SVP Americas, New Balance: Shows through. Again, it goes back to the values, I think that's really where it all starts. And, we talk a lot about, our culture as an organization. And how important it is and how we wanna really ensure that our culture permeates not just, our associates, those people that we're doing business with.

And then, that in turn starts to show up to the consumer. So Cool. It really needs to have alignment there in terms of, what's the, what's the vision? And that's there are certain athletes in your, we're definitely seeing as the landscape has changed in terms of, both.

Our competitive set in terms of what they mean on that stage and the younger set of athletes that coming up. Obviously some changes, that have been made. So with the NIL for example we're seeing a different crop of athletes, come up and, just like the consumer, right?

Those younger athletes, they want something different and we're able to offer that to them.

Moderator: Jill Manoff, Editor in Chief, Glossy & Modern Retail: Yes. Let's talk a little bit more about the Coco Golf collaboration or partnership. 'cause I really feel like. That worked wonders to popularize your MIU collaboration. Yeah. How did that, what were some of the elements of the a apart of the partnership?

Jill Manoff, Editor in Chief, Glossy & Modern Retail: How did that all play out? Yeah,

Melissa Worth, SVP Americas, New Balance: Cocoa, like I said, we've had her since she's 14 years old, so she's been with the brand for some time now. And our partner with MIU has been around there for a while as well. And so we saw this just great opportunity again, thinking about. Where are the elements that we can help bring a sport and fashion together, or a sport and culture together?

'cause that's what we see, the younger consumer really gravitating towards. As they look at their social media content and there's so much out there, right? How do you cut through? And again, this was just, a really nice marriage of two long-term partners that we already had that we could bring together and put on this world stage.

And in a way that. I think hadn't been done right. Like a like a fashion house, like Mimi, I don't think has ever really created a on court kit for an athlete like Coco. Yeah, it was great. And, remains to be one of our most exciting collaborations.

Yes. Especially for her, for that female consumer.

Moderator: Jill Manoff, Editor in Chief, Glossy & Modern Retail: Check them out. Yeah. Of them. So you talked a little bit about the younger audience. Talk a little bit more about who you're targeting today and what beyond these sports partnerships are working to acquire them.

Melissa Worth, SVP Americas, New Balance: Yeah. So we. Of the things that we had to shift as a brand.

I've been with the company for, about six and a half years and, when I came in we were really known right as the dad shoe and our, we had mostly what we're calling that heritage consumer. And when I came in we had four different consumer targets that we were going after, and it was too many.

We didn't have enough marketing dollars, and we weren't really clear on what our communication was to that consumers or to those four consumers, as a brand. So we got really focused and we targeted in on what we call the global independent consumer. And so everything really started, we started to put that consumer at the center of our.Melissa Worth, SVP Americas, New Balance: Entire go-to market process, right? So from product development to the marketing strategies to how things should show up, and get executed in market. And once we started to make that shift, we really started to accelerate how we showed up consistently as a brand to that consumer.

Yeah. And I think really, ensured that everything, like I said, from the athletes. To the ambassadors, to the collaborations, to the product that we were putting out in the market were really targeted and put where that, in front of that consumer, where that consumer was going to see them. And so I think that's been, really the recipe that we've used in addition to, I will say, ensuring that the, again, going back to that, the storytelling.

The storytelling behind the why, the why this. Product, the why this athlete or ambassador, right? The why this cultural moment is threaded together in a way that really makes sense and that the consumer can engage in 'em. Yes.

Moderator: Jill Manoff, Editor in Chief, Glossy & Modern Retail: Let's circle back to what's happening. And you mentioned that you have a great store here to me.

Jill Manoff, Editor in Chief, Glossy & Modern Retail: Yeah. But let's talk about your stores, your new stores, your flagship stores. Yes. They definitely, I feel like they're being elevated. They are, yes. What's happening and what does it say

Melissa Worth, SVP Americas, New Balance: about your direction? Yeah so our direct to consumer business, it's a really important piece of our business.

Our wholesale business with our retail partners is also really critical. We look at both as, what I say is an ecosystem in terms of how are we putting ourselves in front of the path of the. Consumer and where are we going to acquire our new consumers? And so one of the things that we had to do as a brand is really get sharp on, what our retail format should be.

Where we're showing up in our direct to consumer business and in our stores. And so we've been very busy rolling out new stores around the world. So again, while people are here, we have. One of our fairly new store concepts over here on Newberry Street. It's, we call it our UCC concept. And it was really brought through all through research done against that global, independent, right?

And so in that store, you're really gonna see us getting focused on storytelling. You're gonna see a more premium boutique way. That new balance is showing up to that consumer. And so we've been busy rolling those out. We now have. Probably north of a hundred of them globally. And we're seeing a lot of success putting those, in the best markets and the best high streets and the best malls around the globe.

And in addition, again, if anyone makes it over to our campus, we have our headquarters store there, which is our flagship store, and we've been redoing our flagship format. So we've opened this one in Boston. We opened London in April and we will open Tokyo in December, and so that is like a much larger curated storytelling.

As you really navigate through the store, you're getting a different experience with each of the touch points that we offer. As a brand, and sport come to life much more in that store where we have the space to really, romance it and tell the storytelling. And so we've seen fantastic results, where we put a store, we see the halo effect, obviously in our.com business, but on our wholesale business as well. And it enables a place that, the brand can really show up as the vision is for the brand.

Moderator: Jill Manoff, Editor in Chief, Glossy & Modern Retail: Yes. As you put. More efforts, more investment into the those stores.

Jill Manoff, Editor in Chief, Glossy & Modern Retail: Like how are you thinking about wholesale your wholesale partner? Is it kinda, I know, are you moving more direct?

Melissa Worth, SVP Americas, New Balance: We are, we've been our business has been growing on both ends, right? Wow. So we haven't declared that our direct needs to be a certain percent of our overall business, our wholesale partners are incredibly important to us. It's really how the brand was built. We still do a huge business with, small independence, across the globe. And so those are just as important to us, as our big partners, like a Dick's Sporting Goods, a Footlocker, or j Ds.

Sports. Again, it goes back to that, consumer acquisition and ensuring that we're putting ourselves in front of the path of the consumer and the wholesale partners. They have that consumer walking through their door. So it's really important that we partner together strategically and with our best partners.

We have. Collaborative vision together of, what the brand should be in their ecosystem. How big we wanna be over the course of the next five years and what are our enablers that are gonna be able to bring that to life. And so where we've put in that more strategic partnership in terms of growth objectives and how we wanna get there, we've seen our business accelerate.

And I will say it also has really helped in terms of, being very diligent and, and disciplined about how we come to life in market, ensuring that, we look consistent, across the marketplace. So how we show up in a Footlocker versus how we show up in our D two C or how we show up in a Dick's Sporting Goods.

It really all works together to, have that one new balance, vision. Yes.

Moderator: Jill Manoff, Editor in Chief, Glossy & Modern Retail: We've got a lot coming. You're opening stores, you have some football, some new sports partnerships, obviously ongoing growth. What more are you excited about in the future moving forward?

Melissa Worth, SVP Americas, New Balance: I'm excited.

We just have continued potential as a brand, right? Yeah. If you look at sort of the categories that we can play in we have a lot of them that are untapped. Apparel is a place that we're really looking to accelerate. We think there's a huge opportunity there. As well as with our accessories business.

And again, like bringing some of these sport categories to life in a more robust way, but it's a, it continues to be a very exciting time for the brand.

Moderator: Jill Manoff, Editor in Chief, Glossy & Modern Retail: Amazing. This has been fantastic. Thank you. Let's give Melissa a hand. That was wonderful. Thank you. Questions.