When it comes to athletic footwear, there are really three major players in the American market: Nike, Under Armour and Adidas. Despite having a strong brand, Adidas continuously struggled to stay on the radar in recent years, losing a majority of its market share to Nike. But now, with a recent change up across the company’s focus in leadership, product line and brand image, Germany’s prized shoe brand is showing that they are ready to once again take on the US market, and the numbers show it’s paying off.
“We are coming from a very different basis than our larger competitor.”
Adidas has centered more of its attention on the fashion of their shoes to show consumers that athletic gear doesn’t have to be a fashion miss. And for those who want the look of yesteryear, the company has surprisingly managed to turn sales of their previously struggling Reebok brand around after targeting the growing retro trend fueled by millennials.
“We need to be humble about where we are in the US,” Adidas CEO Kasper Rorsted said on a call with reporters. “Our target is to build sustainable brand loyalty. We are coming from a very different basis than our larger competitor.”
That ‘larger competitor’ is still Nike, which has maintained a sizable lead against the competition, but the rate in which Adidas is moving closer to the top should leave the American shoe giant feeling a little less confident about its sneaker domination on its home turf.
Adidas’ recent first quarter results blew past expectations, reporting a net income of 455 million euros ($498 million) — a 30% year-over-year jump — and an operating profit rise of 29%. Looking more closely at the US, Adidas was able to pull of an impressive 31% sales gain in just the first three months of 2017, whereas Nike ended its last quarter with only a 4% year-over-year increase in North American sales.