Adidas boosts profits with retro sneakers
(CNN) — The Adidas Samba and Gazelle sneakers may look like they’re from a different decade, but they’re the most popular shoes on sale right now.
The German sportswear company said sales of retro sneakers were “very strong and growing,” helping boost first-quarter profits for the company, which is still trying to find its footing after ending a business partnership with rapper Ye.
Buoyed by the success of the sneakers, as well as increased demand for running, basketball and soccer sneakers, Adidas reported net income of about $182 million for the first three months of 2024, a sharp change from the same period last year when the company reported a loss in the amount of 26 million US dollars.
The history of Samba shoes dates back to the 1950s, when they were worn by a German soccer team that was looking for a durable shoe to play on ice and snow. Although the actual design was modernized, the three stripes became Adidas’ signature symbol.
The Gazelle sneaker, which also features three stripes, dates back to the 1960s and was originally intended for indoor sports before becoming one of the most recognizable pairs of shoes.
In particular, sales in Europe grew by 14%, and Adidas also saw strong demand for its products in China and Latin America. North America has been a sore spot for the brand, with revenue down 4% due to excess inventory at retailers.
“Markets remain volatile and challenging, but we feel we are making progress across the board,” Adidas CEO Bjorn Gulden said in a statement. “We will continue to ‘over-invest’ in product, brand, sales and marketing to drive continued growth.”
Adidas reiterated its positive outlook for 2024, especially with upcoming major sporting events including Euro 2024 and the Copa America, as well as the Olympic Games.
Rival Nike recently secured the rights to be the official kit supplier for the German national soccer teams from 2027 to 2034, abruptly ending the sport’s more than seven-decade partnership with Adidas, which spanned the men’s team’s four World Cup victories.
Adidas suffered a rare annual loss last year, hit by the fallout from its costly split with rapper Ye, weak sales in North America and huge taxes.