New Balance UK improves turnover and profitability in 2024

New Balance Athletic Shoes (U.K.) Limited reported a strong financial year for the period ended December 31, 2024, with profit after taxation rising significantly to 143.9 million pounds, up from 114.4 million pounds in 2023. This performance was driven by a 16.3 percent increase in turnover and a marked improvement in profitability across its wholesale and direct-to-consumer channels.

The company's gross margin improved to 45.7 percent through increased direct-to-consumer sales and supply chain efficiencies, which, combined with cost base management, boosted operating profit margin to 19.5 percent.

The company's financial health saw a substantial improvement in its balance sheet, with net current assets increasing from 26.5 million pounds to 108.5 million pounds. Cash and cash equivalents also swung from a deficit of 42.1 million pounds in 2023 to a positive balance of 39.8 million pounds in 2024, driven by the repayment of a bank overdraft and trade finance facility.

Strategically, New Balance continues to invest in key sports categories—such as running, football, and basketball—to support its objective of becoming a top 3 global athletic brand. The company is actively driving its presence through direct-to-consumer channels and remains committed to promoting domestic manufacturing and R&D within the UK. Despite ongoing global tariff uncertainty and higher production costs across the industry, management remains confident in the brand's strong demand and long-term resilience.

New Balance has also set ambitious 2030 Science Based Targets (SBTs) to reduce Scope 1 and 2 emissions by 60 percent and Scope 3 emissions by 50 percent from a 2019 baseline. The company is also working to transition to 100 percent renewable electricity by 2025.