New Balance is one of the world’s leading sports footwear and apparel brands. As an iconic brand with loyal followers, investing in New Balance can be attractive for many investors. There are a few ways investors can get exposure to New Balance – investing in New Balance stock by acquiring shares of its parent company, investing in the brand through licensing deals, or investing in New Balance products and memorabilia. With smart investment strategies, investors can benefit from the continued growth and strength of the New Balance brand over the long-term. Factors like New Balance’s global expansion plans, focus on technology and sustainability, and brand equity among runners and sneakerheads make it an appealing investment target in the active lifestyle and footwear sector.
Acquire shares of New Balance parent company
New Balance is a privately held company, but investors can purchase stock in New Balance’s parent company – Boston-based New Balance Athletics Inc. The company was founded in 1906 and remains family owned with shares closely held. While not publicly traded, those with sufficient capital can try to acquire shares privately. The company has a strong balance sheet with annual revenues over $4 billion and sales growth outpacing rivals Nike and Adidas in recent years in the key US market. The company is also expanding globally with new stores across Europe and Asia. With strong financials and growth runway, New Balance stock could offer long-term upside for investors.
Invest through licensing partnerships
Given New Balance is a private company, another option for investors is trying to structure licensing partnerships and joint ventures. Apparel and shoe brands frequently engage in licensing deals to expand into new products, regions, and retail channels. Investors may be able to acquire licensing rights to New Balance’s intellectual property for certain products or geographies. This allows investors to benefit from the strong brand equity and customer loyalty New Balance enjoys while leveraging their own manufacturing, marketing and distribution expertise. Companies like Authentic Brands Group have succeeded with this licensing investment model. However, New Balance may be reluctant to engage in broad licensing deals that could dilute brand control.
Purchase New Balance products, memorabilia
For investors with smaller budgets, buying shares of the actual company may not be feasible. However an alternative is investing in New Balance products, especially limited edition sneakers that could appreciate over time. Certain NB shoe models like the 990v5 and 2002R have become very popular and sell out quickly. Collectible sneakers can increase in resale value substantially. Retro models and special collaborations with hyped brands also have strong collectibility. Besides shoes, vintage New Balance apparel and accessories can also become coveted over time. Completing one’s collection with rare New Balance items that are no longer available can be a fun investing activity for brand enthusiasts.
Monitor acquisitions, IPO potential
Some analysts speculate that New Balance may consider an IPO or acquisition exit in the future as its valuation continues rising. Japanese conglomerate Itochu took a minority stake in the company in 2021, valuing the brand at around $10 billion. An IPO could create an opportunity for public market investors to buy shares at the initial offering. New Balance is also frequently cited as an acquisition target for larger sportswear giants like Nike or Adidas as they look to expand their portfolio and enter new demographics. Keeping an eye out for any IPO or acquisition news can help identify future opportunities to invest in New Balance equity.
New Balance’s brand strength, loyal customer base, and growth prospects make it an attractive investment target for those seeking exposure to the active footwear and apparel sector. While direct investment is limited given its private status, opportunities exist through acquiring parent company stock, licensing deals, purchasing brand memorabilia, and monitoring for an IPO or acquisition.