From Helen Reid
London (Reuters) – Can Adidas win more American customers from the Nike market leader will be crucial for his continuous success this year, investors and analysts say, because the German brand is looking for new growth sources outside his sneakers Samba and Gazelle.
Uncertainty about whether the demand of consumer in China will recover many brands, including the luxury sector, to focus more on US customers as growth for growth for 2025.
Executive director Bjorn Gulden has turned to Adidas since Mark broke up with the rapper Yee and abolished her entry line Yeezy Sneaker in October 2022. ADIDAS shares have increased by 160% since its appointment was announced next month.
Investors will expect Gulden to explain that Adidas can continue to get a market share from Nike, while repeating new sportswear brands such as Running and Hok when reporting on year -round results on March 5.
Nike’s share of the global market of sportswear fell to 14.1% last year with 15.2% in 2023, according to Globaldata. Adidas’s market stake increased to 8.9% with 8.2%, and other winners included New Balance, running and Hoka.
UBS analysts said that European brands have historically fought to compete in the United States, and North America has been lagging behind Adidas lately, although they see that this is changing.
The North American sale of German companies, which in the third quarter compared to 7%, did not fully recover from the end of its Yeezy line, which was popular in the United States.
Overall, Adidas Sales increased by 19% in a quarter to 31 December, and 12% over 2024. As a whole, while Nike sales fell by 9% in the last quarter that ended on November 30 last year.
“The difference between the growth of Adidas and Nike is currently huge,” said Thomas Jökel, a portfolio manager at the Union Investment, which holds shares in Adidas.
Adidas’ entire sales should continue to grow at least 10% a year as long as Nike is fighting, Jökel said, adding that the United States and the wider northern America market are a key battlefield.
Adidas aimed at US consumers, recently launched the cooperation of clothing and shoes, which he said was inspired by the “Collegiate American” with Sporty & Rich label based in Los Angeles, and the new SuperStar 92 sneakers with American musician and designer Pharrell Williams.
His recent athletes’ signatures include a women’s NBA player Satou Sabally and football players on the Travis Hunter college.
“Adidas realizes the strong gains of a market share in the US in retail with direct consumer and sports goods, guided franchise Terrace (Samba, Gazelle), who saw a strong sale at full price through the holiday season,” said Anaesha Sherman, analyst from Bernstein.
(Reporting Helen Reid; Mounting Matt Scuffham and Emelia Sithole-Matarise)
