Brooks Starts Off 2023 With a Bang

Welcome back to FN Daily, where we break down the biggest stories happening in footwear and retail.

Brooks Running reported earnings, Nordstrom is closing two stores and Simon remains optimistic on demand for mall space.

Here's what you need to know.

Brooks Running Continues Growth in Q1 With Record Sales in EMEA Region

Brooks Running continued to grow in the first quarter, after a record 2022.

In the first quarter of 2023, the Seattle-based performance running brand reported 20 percent year-over-year global revenue growth, including a record 32 percent increase in the Europe, Middle East, and Africa (EMEA) region.

Brooks said it also saw strong brand demand across retail channels in the first quarter as it worked to overcome pandemic-related supply chain and inventory hurdles.

Zoom out: These results follow the brand’s full year 2022 results, which broke sales records.

Nordstrom Will Close 2 Downtown San Francisco Locations as City’s Woes Continue

As crime and safety issues continue to impact downtown San Francisco, Nordstrom is closing two stores in the city.

Jamie Nordstrom, the retailer’s chief stores officer, told employees in a Tuesday memo that the Seattle-based company made the decision not to renew its leases at the San Francisco Centre Nordstrom store and Market Street Rack unit, located across the street. The Rack store’s last day of business will be July 1, while the San Francisco Centre location will remain open through the end of August.

The news comes a month after Whole Foods said it would shutter its downtown San Francisco store, and other retailers are following suit.

Simon Says Demand for Mall Space Is Strong, Despite Recession Concerns

The largest U.S. mall owner is optimistic about demand for mall space, despite the possibility of a looming recession.

In the first quarter of 2023, Simon’s occupancy was 94.4 percent, up 1.1 percent from the same quarter of 2022. Simon signed more than 1,200 leases for more than 5.9 million square feet in the quarter.

Simon has been particularly bullish about physical retail throughout the pandemic. If economic conditions remain stable, the company is in good shape to meet or surpass its 2019 occupancy level of 95.1 percent, Simon said.

“It’s really going to be the external environment that could slow this down,” he said, adding that he doesn’t expect to see an outright recession, but rather a “regional recession” that could impact specific states and markets more than others.

Need more shoe news?

• Yeezy Must Pay $300,000 to Brooklyn Creator
• Veronica Beard Reimagines the Retro Dr. Scholl’s Sandal
• Jil Sander Names Luca Lo Curzio Brand CEO
• New Guards Group Forms New Division to Operate Reebok Licenses

Want more? Sign up here to receive FN's daily newsletter directly in your inbox.