Adidas’ Retro Sneakers Drive Record Profits Amidst Market Volatility

Adidas’ iconic Samba and Gazelle sneakers may appear as if they belong to another era, but they are currently the most popular footwear items for sale today. According to Adidas itself, sales of these retro-style shoes have seen strong growth and are increasingly becoming a key factor driving overall revenue at the company. This development has contributed significantly towards an impressive net profit figure reported by Adidas in Q1 2024 – $182 million compared with last year’s loss during the same period which stood at approximately $26m. The brand owes this success to a combination of factors, including higher demand for its running, basketball and soccer shoes as well as increased sales across Europe, China and Latin America (with revenue in these regions rising by 14%, respectively). However, North American markets have not fared quite so strongly, due to the existence of excess stock on store shelves. In contrast to Nike’s recent announcement that it will become the official kit supplier for Germany’s national soccer teams from 2027 until 34 (ending a partnership with Adidas which has spanned four World Cup wins), Adidas remains optimistic about its future prospects, thanks in part to major sporting events like Euro 2024 and Copa America as well as the Olympics. CEO Bjørn Gulden expressed his confidence that continued investment into product development, brand promotion and sales & marketing will lead to further growth for the company moving forward.