Bloomberg Businessweek Podcast Summary
Episode Title: Berkshire-Owned Brooks Running Sees Another Record Year
Release Date: February 13, 2026
Hosts: Carol Massar and Tim Stenovec
Guest: Dan Sheridan, CEO of Brooks Running
Episode Overview
This episode explores the enduring success of Brooks Running, a Berkshire Hathaway subsidiary, amid economic headwinds and an evolving consumer landscape. CEO Dan Sheridan discusses Brooks' record-setting growth, global strategy—especially in China—product differentiation, supply chain management, and the advantages of Berkshire Hathaway ownership. The conversation offers insights into current trends in the athletic apparel industry and how Brooks continues to win market share worldwide.
Key Discussion Points & Insights
1. Robust Growth Despite Economic Uncertainty
-
Strong Consumer Health:
Although the US labor market shows signs of sluggishness, Brooks finished its 2025 fiscal year with 16% growth. Sheridan notes,"Our consumer is very, very healthy right now, and it's rooted in the participation... Brooks is winning the runner at the cash register.” (02:33)
-
Global Participation:
The popularity of running and walking continues to rise, fueling the company's success not just domestically, but globally.“It truly is a global story for us. We’re winning." (03:15)
2. Supply Chain & Tariff Navigations
-
Supply Chain Stabilization:
Sheridan acknowledges lingering tensions in global trade but reports stabilization over the past 4-5 months:“I would tell you it’s stabilized for us in our category.” (03:15)
-
High Tariffs:
Brooks operates in a high-tariff product category and has actively managed its processes to mitigate profit compression due to these costs.“We have high tariffs…we went to work on that through the whole value chain.” (04:30)
3. China Strategy & Expansion
-
Explosive China Growth:
Brooks is investing heavily in China, with plans for 30 stores by 2027 and 245% sales growth in 2025 alone:“The growth we’re experiencing is incredible and it’s just a testament to how we enter markets and how we execute.” (05:37)
-
Community Engagement & Brand Resonance:
Sheridan emphasizes engaging Chinese runner communities and delivering consistently high-performance products as key to their success in China.
4. Berkshire Hathaway Ownership & Leadership Transition
-
Advantages of Berkshire Ownership:
With a long-term strategic approach, Sheridan credits Brooks’ sustained growth to the stability provided by Berkshire:“Ownership matters in business. We’re lucky and fortunate to have the ownership of Berkshire Hathaway.” (06:52)
-
Leadership Update:
With Greg Abel now at the helm of Berkshire after Warren Buffett, Sheridan describes the new era as one of continuity:“The word that comes to mind is consistent…Greg has always led with…deserved trust and empowerment.” (08:09)
5. Regional Business Breakdown
-
US Dominance but Global Growth:
80% of Brooks’ revenue is from the US, but growth is accelerating in Europe (notably Germany) and China:“We’re the number one brand in Germany now in performance run…it’s been a 10 year vision of ours to achieve that.” (09:12)
-
Massive Addressable Market:
Brooks’ strategy is focused on the roughly $48 billion global running market.
6. Product Innovation & Brand Philosophy
-
Product-First Approach:
Sheridan emphasizes research into human biomechanics and product innovation as the core of Brooks’ value proposition:“We’re a product company first and foremost…innovation for the runner is why we win every single day.” (10:44)
-
Brand Authenticity:
Brooks leverages its authenticity and execution in both product quality and branding, resonating deeply with serious runners globally.
Notable Quotes & Memorable Moments
-
On why consumers remain loyal to Brooks:
“Because running is so important in their life, they trade off on other discretionary items, but the shoe and apparel always wins…”
— Dan Sheridan (03:15) -
On unique value within the Chinese market:
“We deliver fantastic performance product consistently over time. We have a brand energy that resonates with the Chinese runner, and we’re engaging in the communities…”
— Dan Sheridan (05:37) -
On the Berkshire effect:
“The biggest advantage we have at an ownership structure is Berkshire Hathaway... I as a CEO have a very long time horizon that I focus on because of our ownership.”
— Dan Sheridan (06:52) -
On leadership shift at Berkshire:
“Greg has always led with…deserved trust and empowerment. It’s consistent with in terms of how they think of the subsidiaries.”
— Dan Sheridan (08:09) -
On Brooks’ technological edge:
“We spend hours, months, years researching the biomechanics of human motion. We are in the business of keeping people healthy, running farther, faster, longer…”
— Dan Sheridan (10:44)
Timestamps for Key Segments
- 01:30 – Episode begins: Economic backdrop and Brooks introduction
- 02:33 – Brooks’ 2025 performance and resilient consumer base
- 03:15 – Changes since last interview and supply chain normalization
- 04:30 – Tariff impacts and profitability outlook
- 05:37 – Brooks’ strategy and growth in China
- 06:52 – Berkshire Hathaway ownership and long-term vision
- 08:09 – Leadership transition from Buffett to Greg Abel
- 09:12 – Brooks’ regional market breakdown and runner participation
- 10:44 – Product innovation, brand ethos, and competitive advantage
Tone & Takeaways
The tone is optimistic, pragmatic, and forward-looking. Dan Sheridan balances details about supply chain logistics and profitability with genuine enthusiasm for running culture and Brooks’ positive social impact. He repeatedly highlights the brand’s focus on product innovation, community, and authenticity—laying out a conviction that the company’s Berkshire backing allows for uniquely patient, strategic growth in a competitive sector.
This summary provides a structured and engaging recap of the entire episode, spotlighting Brooks Running’s current position and future ambitions—a valuable resource for listeners and those interested in the intersection of sports, business strategy, and global retail expansion.