Jim Davis bought New Balance on the day of the 1972 Boston Marathon. He paid roughly $100,000 for it. At the time, the "company" was basically a garage-scale operation with six employees making about 30 pairs of shoes a day. It was a tiny, niche brand that specialized in orthopedic arch supports and the "Trackster," the world’s first ripple-soled running shoe that came in multiple widths.
Honestly, the sneaker world back then was unrecognizable compared to the hype-beast culture we see now. Nike was just getting its legs under the "Blue Ribbon Sports" name, and Adidas was the undisputed king. Most people thought Davis was taking a massive gamble on a brand that barely anyone outside of New England track circles had ever heard of. But he saw something. He realized that runners weren't just athletes; they were a growing demographic of people who actually cared about how a shoe fit their specific foot shape.
Today, Jim Davis New Balance is a global powerhouse. We’re talking about a company that hit $7.8 billion in sales in 2024. That is a 20% jump from the year before. While other brands are struggling with identity crises or supply chain meltdowns, New Balance is hitting its stride by doing the exact opposite of what the rest of the industry does.
The Man Who Refused to Go Public
One of the weirdest things about New Balance—and I mean "weird" in a way that business nerds love—is that it remains private. Jim Davis owns nearly the entire thing. He doesn't have to answer to Wall Street. He doesn't care about quarterly earnings calls or pleasing shareholders who want to squeeze every last cent out of the margins.
This independence is the brand's secret weapon.
Because Davis isn't beholden to public investors, he can make "bad" financial decisions that are actually great brand decisions. For example, keeping five factories running in New England. It’s expensive. From a pure, cold-hearted accounting perspective, it makes no sense to manufacture in Massachusetts and Maine when you could do it for a fraction of the cost in Southeast Asia. Yet, New Balance sticks with its "Made in USA" line.
These shoes, like the iconic 990 series, require a domestic value of at least 70% to carry that label. It’s a point of pride for Davis. It’s also a savvy marketing move, even if it started as a genuine commitment to local jobs. People love the idea of craftsmanship. In a world of disposable plastic, a grey suede 993 feels like a piece of equipment, not just a fashion statement.
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Why the "Dad Shoe" Actually Works
You've probably noticed the "dad shoe" trend. For a long time, New Balance was the butt of the joke. They were the shoes your suburban father wore to mow the lawn or walk around Disney World. They were chunky, grey, and aggressively uncool.
Then something shifted.
Authenticity became the ultimate currency. Younger generations got tired of the over-the-top, futuristic designs from competitors and started gravitating toward things that felt "real." Jim Davis never chased the trend; the trend eventually chased him. By staying consistent with the 990, 574, and 991 models, the brand became a symbol of "if you know, you know" style.
He once said that the company focuses on being the best version of themselves, not the biggest. That sounds like corporate fluff, but the numbers back it up. They aren't trying to be Nike. They are trying to be the best New Balance. That nuance is why they can sell a pair of sneakers for $200 while competitors are discounting theirs to $60 just to move inventory.
The Politics and the Backlash
It hasn't all been smooth sailing for Davis. Being a private owner means your personal politics can sometimes leak into the brand's image, whether you want them to or not.
In 2016, a New Balance executive made a comment about how things were "moving in the right direction" regarding trade policies under the incoming Trump administration. This was specifically about the Trans-Pacific Partnership (TPP), which New Balance opposed because they felt it would hurt their domestic manufacturing.
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The internet did what the internet does.
People started burning their sneakers on Twitter. There were calls for boycotts. Davis himself has been a significant donor to Republican causes, contributing hundreds of thousands to various PACs and campaigns over the years. For a brand that has a massive following in progressive urban centers and among young "streetwear" fans, this created a massive disconnect.
The company had to work hard to clarify that their support for certain trade policies was about protecting American jobs, not an endorsement of an entire political platform. It was a messy moment. It showed the risk of a high-profile owner having a loud political footprint. But, interestingly, it didn't slow them down for long. The brand’s sheer momentum and the quality of the product eventually quieted the noise.
New Balance by the Numbers (2024-2025)
- Annual Revenue: $7.8 billion (2024).
- Global Sales Growth: 20% year-over-year.
- U.S. Manufacturing: 5 active factories in New England, with a 6th (Londonderry, NH) opening in early 2026.
- Philanthropy: The New Balance Foundation has donated over $165 million to date, including a massive $100 million gift to Massachusetts General Hospital in 2025.
- Market Share: Roughly 10% of the U.S. athletic footwear market.
The Future of the Davis Legacy
Jim Davis is in his 80s now. His wife, Anne Davis, has been a core part of the leadership for decades, and his children are now heavily involved in the foundation and the business. They aren't looking for an exit strategy. There’s no IPO on the horizon.
Instead, they are doubling down on what they call "Boston Landing." This is a massive $500 million development in Brighton that serves as their headquarters. It’s got a world-class track facility, a commuter rail station, and practice facilities for the Celtics and the Bruins. It’s a physical manifestation of Davis’s belief that the company should be an anchor for the community.
They’re also getting smarter with collaborations. Instead of just slapping a celebrity's name on a shoe, they’re working with niche designers like Teddy Santis (of Aimé Leon Dore), who was brought on as the Creative Director for the Made in USA line. This move bridged the gap between "old school quality" and "modern cool" perfectly.
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What This Means for You
If you're a consumer or an investor (well, you can't invest in them, but you can track them), there are a few takeaways from how Jim Davis runs New Balance.
First, quality pays off in the long run. While other brands cut corners to save $2 on a midsole, New Balance kept their premium materials. That created a loyal base that doesn't mind paying more.
Second, independence is a superpower. Being private allows them to take risks—like the "New Balance Reconsidered" resale platform launched in 2024—without worrying if it will hurt the stock price next Tuesday.
Finally, narrow your focus. Davis didn't try to make shoes for everyone at first. He made shoes for people who needed specific widths. By winning that small battle, he eventually won the larger war.
Actionable Next Steps:
- Check the "Made in USA" tag: If you want the highest quality New Balance, look for the "MADE" designation. These are the shoes produced in the New England factories Davis fought to keep open.
- Look into the 990v6: This is the current flagship of the Davis philosophy—high-tech performance mixed with that classic grey aesthetic.
- Monitor the Londonderry Opening: Watch for the New Hampshire factory launch in early 2026; it’s a signal of how much the brand is willing to bet on domestic production versus their competitors' offshore models.