Brooks Running reached $1 billion in North American revenue last year for the first time in the company's history. Year-over-year, the Berkshire Hathaway (BRK-B, BRK-A) subsidiary posted revenue growth of $1.2 billion in 2023.

Brooks Running CEO Jim Weber says that in the US the consumer remains strong, but that there are headwinds in Europe. When it comes to inflation, Weber says the company did experience cost increases coming out of the pandemic, particularly when it comes to transportation. However, he notes that the company hasn't raised prices in the last two years because those pressures have abated some. "In our product supply chain structures, we're not seeing a lot of inflation pressure right now and our prices aren't going up on a shoe-for-shoe basis in '24," Weber says.

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Editor's note: This article was written by Stephanie Mikulich.

Video Transcript

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SEANA SMITH: American consumers are still spending despite the pressure of sticky inflation. Now, the latest numbers released by Brooks Running showing record revenue growth an all-time-high sales in North America. The running shoe brand, which is a subsidiary of Warren Buffett's Berkshire Hathaway, is also getting a big boost from his direct-to-consumer e-commerce business. Sales within that division growing 24% from a year ago. So let's talk about that and more with Jim Weber. He's the CEO of Brooks Running.

Jim, it's good to have you here. So we've been trying to figure out the consumer right now, the strength of the consumer, resiliency of the American shopper. What are some of the trends-- obviously, you had a very strong 2023. Has that momentum kept pace here in 2024 so far?

JIM WEBER: You know, Seana, it has. We see it accelerating. We had a phenomenal holiday. All-time record year last year. Over 20 million units pairs sold. But our momentum coming into this year is as strong as ever. And we see the consumer very, very strong in the United States. Underpinning that is participation, being active, run, walk, hike. In Europe, more headwinds. I think the economy, I would say, is tentative. But globally speaking, the running category is sort of an it category and athletic footwear right now.

BRAD SMITH: Jim, I'm getting a ton of push notifications from every single company right now about the type of shoe that they're coming out with, a lot of innovation that everybody's putting into the market right now. But then it triggers this question of at what price? Where is the sweet spot in pricing that you're seeing over at Brooks Running?