Brooks Running Posts 12% Growth as Buffett's Berkshire Hathaway Approach Continues

Brooks Running's revenue rose 12% year over year in the first three quarters of this year. According to Sina Finance, sales through September increased in every region, including 9% in the Americas and Asia-Pacific and 24% in Europe, the Middle East and Africa (EMEA). Berkshire Hathaway added Brooks in 2006 when Fruit of the Loom acquired Russell Athletic, which included Brooks. In 2012, Warren Buffett made Brooks a directly controlled, independent subsidiary. Buffett stepped down as Berkshire Hathaway chairman in September this year to become honorary chairman; Greg Abel is CEO and Howard Buffett is chairman. Brooks CEO Dan Sheridan said Berkshire's backing allows the company to plan in five- and 10-year cycles and invest for the long term. He said he reports to NetJets CEO Adam Johnson and that management stability gives Brooks a competitive advantage when entering markets. Under Berkshire's decentralized management model, Brooks has avoided industry price wars and expanded globally. Its Ghost and Adrenaline GTS lines helped it take the top market-share position in U.S. specialty running retail channels. Sheridan said neuroscience is the company's next frontier, including research into using brain-related technology to help athletes stay in a state of flow.