It’s actually kind of wild when you look at the numbers. Most people still think of New Balance as the brand for "dad shoes" or that reliable pair of grey sneakers your uncle wears to mow the lawn. But if you’ve been paying attention to the business side of things lately, you'll see a totally different story unfolding. Under the leadership of Joe Preston, New Balance has turned into a legitimate $7.8 billion powerhouse that is unironically outperforming the giants of the industry in terms of growth.
Preston isn't some outside "fixer" brought in to slash costs. He’s a lifer. He started at the company back in 1995 as a senior product manager and worked his way through basically every department—Asia Pacific, International, Global Product, and Marketing—before taking the CEO chair in 2018.
That longevity matters. He didn't just inherit a brand; he helped build the culture he now runs.
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The "Global Independent" Pivot
When Joe Preston took over New Balance, the company was doing well, but it wasn't exactly "cool" in the way it is today. In 2019, he made a decision that basically changed everything. He identified a specific target consumer he calls the "global independent."
This isn't just a marketing buzzword. It represents a younger, more individualistic person who doesn't want to wear what everyone else is wearing. Honestly, it was a risky bet at the time. Nike was dominating the "hype" market, and Adidas had its own momentum. But Preston realized that there was a massive opening for a brand that felt authentic and focused on quality over flash.
How the Strategy Actually Works
- Selective Distribution: You won't find the premium New Balance stuff just anywhere. Preston has been very vocal about "controlling our destiny." They pulled back from discount stores and focused on retailers that would treat the brand as a premium product.
- The Pricing Shift: In 2019, the average New Balance shoe in the U.S. sold for about $58. Today? It's over $80. That’s a massive jump in "brand heat."
- Bespoke Athlete Deals: Instead of just signing everyone, they look for athletes who "share the values." Think Coco Gauff, Shohei Ohtani, and Sydney McLaughlin-Levrone.
One of the coolest things Preston implemented is something called "sprints." These are small, autonomous teams that work on specific projects for 30 to 90 days. It’s basically a way to make a multi-billion dollar company move like a startup. They used this method to fix their digital commerce and build out their direct-to-consumer business when the pandemic hit.
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Joe Preston New Balance Leadership and the $10 Billion Goal
If you listen to Preston talk, he doesn't sound like your typical corporate CEO. He’s pragmatic. During a keynote at the 2025 NRF Big Show, he mentioned that the company has seen over 20% annual growth for four years straight. Most companies would kill for that kind of consistency.
But he’s not chasing growth at all costs. He talks a lot about "quality of growth." Basically, if they grow too fast, they might lose that premium feel that made them successful in the first place.
Manufacturing as a Secret Weapon
Most big sneaker brands outsourced everything decades ago. New Balance didn't. They still have five factories in New England and one in the UK. Preston has leaned into this hard. Since 2021, the company has dumped about $155 million into expanding U.S. manufacturing, including new spots in Methuen, MA, and Londonderry, NH.
Is it cheaper? Definitely not. Tariffs and local labor costs make it a headache. But Preston argues it gives them "agility." When a specific style starts trending on TikTok, they can theoretically ramp up production faster because they own the machines.
What's Next for the Brand?
The goal now is $10 billion in annual sales. To get there, Preston is betting on a few key things. First is apparel. Right now, it's a $1.2 billion business, but there’s a lot of room to grow. Second is materials. He’s mentioned that the "next big revolution" will be in sustainable or plant-based materials that actually perform.
He also knows the market is shifting. While Nike has struggled recently with slowing sales, New Balance has been picking up that market share. It’s a classic case of staying the course while the competition gets distracted.
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Actionable Takeaways for Business Leaders
- The Power of the Lifer: Preston’s 30-year tenure shows that deep institutional knowledge can be a massive advantage when navigating industry disruptions.
- Control Your Channels: If you want to be a premium brand, you have to be willing to say "no" to retailers that don't fit your image.
- Agility Over Scale: Use "sprints" or small, cross-functional teams to solve big problems quickly rather than getting bogged down in committee meetings.
- Stick to Your Roots: New Balance stayed in performance running even when lifestyle was the only thing moving the needle. Now, that "dad shoe" authenticity is exactly what the lifestyle market wants.
The reality is that Joe Preston has managed to keep New Balance independent in an era of massive consolidation. They don't have shareholders to answer to every quarter, which lets them make those long-term bets on things like U.S. manufacturing and selective distribution. It’s a blueprint that more brands are probably going to try to copy in the next few years.
To see how this strategy is playing out in real-time, keep an eye on their upcoming product launches in the "MADE in USA" line, as these typically serve as the barometer for the brand's premium health and manufacturing efficiency. Check the "Made in USA" section on their site to see the latest balance of heritage design and modern materials.