OMAHA, Neb., May 5 (Reuters) - The new chief executive

of Brooks Running said the running shoe maker owned by Warren

Buffett's Berkshire Hathaway ( BRK/A ) views China and Europe as

growth areas for a business that generates most revenue in the

U.S.

Dan Sheridan, who became chief executive on April 26, said

in an interview at Berkshire's annual shareholder weekend that

Brooks plans to open its first store in China this fall in

Shanghai, with possibly more later.

"China is a top-10 market for running participation," he

said on Friday. "This is a 30- to 50-year strategy for Brooks.

We're in this for the long haul."

European markets are starting to revive after the

Russia-Ukraine war and rising energy costs caused consumers to

pull back, while retailers struggled with excess inventory and

falling margins.

Sheridan, 51, said the number of runners globally could

double by 2031. He believes 110-year-old Brooks is

well-positioned to capture sales with 300 million people running

or walking as their main fitness activity.

"When you look at the opportunities for this brand, and

trends that underpin those opportunities, it's easy to be

excited in our growth and our future," he said.

Sheridan succeeded Jim Weber, who led Brooks for 23 years

and took the brand from near bankruptcy to $1.2 billion in

revenue. Weber, 64, stepped back primarily for health reasons.

The new CEO joined Brooks in 1998 and has spent his entire

career there, becoming chief operating officer in 2019 and

president in 2022.

The Seattle-based company commands an industry-leading 21%

U.S. market share in adult performance running shoes, according

to Circana/Retail Tracking Service, with its Ghost and

Adrenaline GTS the top sellers.

NEW PRODUCTS

Brooks, which derives 85% of revenue from the U.S., focuses

on the top of the market. "The right way for us to win the

runner is through a science-based approach matched with great

design," Sheridan said.

Pandemic-fueled growth in running has helped support

pricing, he said. The average retail price for performance

running shoes rose 11% in a little over a year, to an average

$87 in the U.S.

Inflation pressures and supply chain problems are moderating

as well, he said. Most Brooks' shoes are made in Vietnam, with a

small percentage coming from Indonesia.

Those supply chain snags disrupted the company's annual and

semi-annual product launch cycles. "That took almost $150

million out of our revenue annually. We're back to a full

assortment of product and a full playbook," he said.

The latest innovation: nitrogen-infused cushioning in

the $160 Glycerin 21, which Sheridan says dampens impact but

returns energy to the runner.

(Reporting by Jonathan Stempel in Omaha, Nebraska)