Adidas Faces Bumps on the Road to Recovery

Sales Dip in North America, Global Growth Impressive

• North America: Sales drop by 5% in the third quarter.
• Global: Sales grow by 3%, reaching a record €6.63 billion.

The Yeezy Line Loss

• Impact: The Yeezy line, designed by Ye (formerly Kanye West), was a significant revenue source.
• Decision: Adidas cut ties with Ye following antisemitic remarks.
• Consequence: Adidas reported an annual loss in 2023 and sold the last Yeezy shoes by the end of 2024.

Fighting Back

• Other Products: Sales grew by 8% in North America and 12% globally.
• Challenges:
• Stronger euro hurt sales by over €300 million.
• Higher US tariffs increased costs.
• Response: Adidas raised their annual profit outlook, offsetting some extra costs.

Looking Ahead

• New Opportunities: Investing in high-tech running shoes and marathon-winning athletes.
• Popular Products: Samba sneakers remain top-selling but not a long-term solution.

Industry Uncertainty

• Challenges:
• Higher US tariffs.
• Volatile global environment.
• Impact: Affected shares of sportswear brands like Adidas and Nike.

Conclusion

Adidas faces a tough road but is not giving up. They are fighting back, seeking new opportunities, and staying positive.