Buzzy sneakers are kicking Adidas in the right direction
The sportswear giant is back in the green
Adidas appears to be back on track following some recent trip-ups — largely owing to an uptick in sneaker sales, with Sambas and Gazelles filling the shoe-shaped gap left after the company parted ways with Kanye West and his once-hyped Yeezy brand.
After posting its first annual loss in more than 30 years in March, citing high inventories as a cause of the sales slump, Adidas’ Q2 report, published today, provided a more promising outlook. Indeed, the German sportswear behemoth made a net profit of €206 million (~$223 million) in the three months to June 30 — up 117% from the same period a year ago — with revenues from its footwear segment alone climbing 17%.
In addition to reducing its inventory problem by €1 billion in the past year, the success of Adidas’ marketing efforts at major sporting events like the Paris Olympics has also helped to boost jersey and other athletic apparel sales.
Samba season
But, as any sneakerhead worth their salt will know, there's a lot of money to be made from zeitgeist-capturing footwear. The dissolution of Adidas’ deal with rapper Kanye West in 2022 drew the curtain on an incredibly lucrative partnership for both parties. In the aftermath of the Yeezy discontinuation, Adidas sales plunged 16% in North America in 2023, despite remaining relatively flat in other regions.
Recently, though, a new fleet of Adidas footwear has been capturing the attention of the fashion (and wider) world, at least if Google searches are anything to go by. Sambas, Gazelles, and Campuses have all hit new internet interest peaks in 2024, as mainstream tastes continue to shift in favor of more classic silhouettes.
Given the fickle nature of fashion, though, Adidas likely already has a team working to deliver its next smash hit, after the Samba was named 2023's “shoe of the year” and ex-UK prime minister Rishi Sunak apologized for “ruining” the sneakers for fans back in April.
