President & Chief Executive Officer, New Balance Athletics, Inc.
New Balance CEO Joe Preston on How the ‘Dad Shoe’ Became a Fashion Statement
How did a brand notoriously known for its uncool “dad shoe” become a fashion craze largely popular with young women?
In this conversation, New Balance CEO Joe Preston discusses his journey to CEO, how he has helped evolve the “dad shoe,” and why the $10 billion revenue goal is so significant.
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Time stamps:
0:00 - Shoes made in the US
3:20 - Journey to CEO
7:40 - Navigating COVID
11:35 - Skills required for lea...
About Joe Preston
In a January 2024 interview, New Balance CEO Joe Preston discussed the company's evolution and his path to leadership. Preston noted that while the brand might have been defensive about its "dad shoe" reputation 15 years ago, it now embraces the label, citing collaborations with fashion brands and ambassadors from music and entertainment. He stated that New Balance has "created some of the best collabs in the industry over the last few years." Preston also provided details on the company's financial trajectory, saying that New Balance ended 2019 at $4.4 billion in revenue, dropped to $3.3 billion during the pandemic, but then saw strong e-commerce growth. He said the company developed plans to reach $7 billion, but that "our plan is to get to 10." He added that New Balance operates six factories in the US, describing it as "a small portion of our overall Global volume" but noting that the company is "the only ones that have athletic manufacturing facilities here in the US."
Transcript (38 segments)
P
Paulina0:04
Joe welcome.
J
Joe Preston0:04
Well welcome Paulina. It's a pleasure to be here. Nice to see you.
P
Paulina0:10
Nice to see you too. I'm really excited about this interview. When we met before, I told you I'm originally from Bulgaria. A few days ago I told my dad I was interviewing you, and he said the first shoe he ever bought was New Balance because it said Made in USA. He was so proud. I didn't know you had that line. Do you hear stories like that often?
J
Joe Preston0:50
Yes, absolutely. People hear that we make some of our shoes here in the US and take great pride in it. They want to support any Made in USA initiative. I'm first generation myself—my parents came from Ireland in 1959 with $100 and stayed with my mother's cousin to get on their feet. I appreciate that immigrants come here to build a better future.
P
Paulina1:37
That's really interesting. You've talked about how domestic manufacturing is a cornerstone value. You have six factories in the US. How does that work? It's a small portion of global volume now, right?
J
Joe Preston1:58
We have six factories in the US—in New Hampshire and Maine. It's a small portion of our overall global volume; we're a $6.5 billion company. But we're the only ones with athletic manufacturing facilities here. We've had them for years. Jim Davis, our owner, didn't want to move manufacturing offshore like others did in the mid-80s. We've been in Skowhegan, Maine since 1979, in Norridgewock since 1978, and in Lawrence since 1979. It makes us a better brand—our quality is stronger, it helps us partner with overseas manufacturers, and we see the impact in those communities.
P
Paulina3:17
That's really cool. So you're CEO now but started at New Balance in 1995. Can you tell me about your journey—what role you started in and how you became CEO?
J
Joe Preston3:33
I joined in 1995 as senior product manager for running, classics, and custom. Custom meant special makeups for key customers. The company was about $150 million then, predominantly in the US with some business in Japan. I came from a $1.2 billion public company, so it was entrepreneurial—my boss got me a laptop on day one, and I thought, 'Wow, I might not have gotten a computer.' The company grew rapidly, and I later managed the Dunham acquisition, then Asia Pacific, then international business, then global product and marketing, then leading the commercial business, and eventually CEO.
P
Paulina5:22
Did you always aspire to be CEO?
J
Joe Preston5:29
Not really. I got into brand management and P&L responsibility, which hooked me on general management. But when I took the job here, I wasn't thinking CEO—I was excited about the athletic industry and the intersection of performance and lifestyle. Plus, I didn't have to wear a suit.
P
Paulina6:11
That's hilarious. So you became CEO in 2018, and then two years later the pandemic hit. How did you navigate that uncertainty, and what leadership lessons did you learn?
J
Joe Preston7:00
I became CEO in late 2018. In 2019 our business wasn't strong, so we pivoted to focus on the target consumer—18 to 34 year olds globally—and invested in our tech stack for online. Kawhi Leonard signed in 2019 and won the NBA championship; our website crashed from traffic the next day. So by 2020, we had a year under our belt. When COVID hit, I ran our international business before, so communication was key. We started a Tuesday morning meeting at 7:30 with global leaders, and we still have it today. It helped us become a truly global brand. We gave small teams authority and autonomy to deliver action plans, not white papers. That's why we came out of COVID stronger than anyone in our industry.
P
Paulina8:28
What skills should young leaders develop to transition from peacetime CEO to wartime CEO?
J
Joe Preston8:40
Communication is important in both. The technology like Zoom augmented in-person connection. In a crisis, narrow the agenda, focus on meaningful areas, and put together small teams with tight timelines. We now have hybrid work—Tuesday, Wednesday, Thursday in the office—because being together helps teamwork.
P
Paulina9:45
As CEO of New Balance, you compete with giants like Nike and Adidas. How do you innovate constantly?
J
Joe Preston10:01
We look across our industry and outside it. For example, we benchmark delivery speed against Amazon, not other shoe companies. Our designers draw inspiration from fashion, automotive, and more. We also have walking meetings and field trips to museums, parks, and racetracks to spark ideas.
P
Paulina10:43
Tell me about the Track at New Balance—the R&D lab.
J
Joe Preston10:52
We have the Boston Bruins practice facility, the Celtics practice facility, and the Track at New Balance—a $300 million multi-purpose venue. It opened in April 2022 and is one of the fastest tracks in the world. It hosts community events and the Division I track and field championship this March. Inside, we have a state-of-the-art innovation center with force plates, chambers for humidity and altitude testing, and facilities for athletes to test footwear. We use the data to develop the best products.
P
Paulina12:35
New Balance is sometimes called a 'dad shoe' brand. Do you embrace that?
J
Joe Preston12:50
15 years ago we might have been defensive, but now we embrace it. We're in baseball, tennis, and have Olympians and fashion ambassadors. We ran an ad for our 990—the first $100 running shoe—saying 'worn by dad in Ohio and models in Paris.' We have heritage and produce high-performance, fashionable products. It's a good space.
P
Paulina13:55
How do you spend your day as CEO?
J
Joe Preston14:01
There's no typical day. I try to block time for planning and connecting dots, not just meetings. Two-thirds of our business is outside the US, so I have calls at odd hours. I focus on recovery—sleep, nutrition, exercise—to stay creative and present. My purpose is helping people be their personal best.
P
Paulina15:30
How does your family react to your role?
J
Joe Preston15:40
At home I'm not the CEO—I'm a father. My kids are older and appreciate it more now. We're like the modern-day Brady Bunch; we plan trips together. I'm just a dad.
P
Paulina16:27
You said New Balance wants to double to $10 billion. What's the timeline?
J
Joe Preston16:46
We ended 2019 at $4 billion, dropped to $3.3 billion during COVID, then grew. Our plan is to reach $7 billion by 2026, but we might hit it in 2024. We'll set a specific date for $10 billion this year. Setting measurable goals aligns the organization, but you have to adapt when things change—like COVID.
P
Paulina18:20,
How do you approach athlete endorsements and measure success?
J
Joe Preston18:37
We partner with athletes and ambassadors who share our values. For example, Coco Gauff joined at 15, and we met her parents. We focus on the tip of the spear—potential game-changers. Our creative uses them across sports. There are many metrics to manage effectiveness. We recently signed Marvin Harrison Jr. for football.
P
Paulina20:02
What areas of innovation are you investing in?
J
Joe Preston20:15
Running platforms like Fresh Foam and Fuel Cell are being dialed in. We work with athletes preparing for the Olympics—it's co-creation. We also launched football boots this year.
P
Paulina21:20
Are there startups you find interesting?
J
Joe Preston21:29
Hoka has done a nice job on the footwear side. In apparel, the barriers to entry are lower, and performance materials are crossing into everyday wear.
P
Paulina22:10
Any recent acquisitions?
J
Joe Preston22:15
No, we own Warrior for hockey and lacrosse, but we have so much opportunity with our own brand that we're focusing internally.
P
Paulina22:45
How do you define success?
J
Joe Preston22:55
From a business perspective, achieving your goals. But ultimately, you want success in both your business and personal life. I think more weight goes on the personal side. We talk openly about mental health—I've shared about my father's Alzheimer's. It's important to be transparent.
P
Paulina24:30
Last question: I'm running a half marathon in April. What's your advice?
J
Joe Preston24:40
First, wear New Balance! Since it's a New York Road Runners event, we're a sponsor. But seriously, don't overtrain—you'll get hurt in training, not the race. Find a plan and be consistent. Don't push too hard too fast. Enjoy the race.