As Adidas strives for greater market dominance, its ability to attract American shoppers away from Nike will be crucial to its continued success in 2025. With the German sportswear giant seeking new growth avenues beyond its iconic Samba and Gazelle sneakers, investors and analysts are closely watching its next moves.
Adidas Targets U.S. Consumers Amid Market Shifts
With uncertainty surrounding consumer demand recovery in China, global brands, including luxury labels, are shifting their focus toward U.S. shoppers. The North American market has become a key battleground for growth in 2025.
CEO Bjorn Gulden has played a pivotal role in Adidas’ turnaround since the brand severed ties with rapper Ye and discontinued the highly lucrative Yeezy sneaker line in October 2022. Following Gulden’s appointment announcement in November 2022, Adidas’ shares have surged by an impressive 160%.
Adidas’ Market Share Gains vs. Nike’s Decline
Adidas is set to report its full-year results on March 5, with investors eager to hear how it plans to gain further market share from Nike while competing with rising brands like On Running and Hoka.
According to GlobalData, Nike’s share of the global sportswear market declined from 15.2% in 2023 to 14.1% in 2024, whereas Adidas’ market share rose from 8.2% to 8.9%. Other growing competitors include New Balance, On Running, and Hoka.
Despite European brands historically struggling in the U.S. market, analysts at UBS see Adidas making inroads. However, the company’s North American sales dropped 7% in Q3 2024 due to the absence of Yeezy sneakers, which had been a major hit in the U.S.
Strong Sales Growth Despite Challenges
Overall, Adidas saw a 19% sales increase in Q4 2024 and 12% growth for the entire year. In contrast, Nike’s sales dropped by 9% in its most recent quarter ending November 30, 2024.
“The difference between Adidas and Nike’s growth is huge right now,” said Thomas Jökel, portfolio manager at Union Investment, an Adidas shareholder. Jökel believes Adidas’ sales should continue to grow by at least 10% annually as long as Nike faces challenges, making the U.S. market a critical factor in Adidas’ expansion.
Adidas Strengthens U.S. Market Presence
To capture American consumers, Adidas has launched strategic collaborations, including an apparel and footwear collection inspired by “collegiate Americana” with Los Angeles-based brand Sporty & Rich. Additionally, it introduced the Superstar 92 sneaker in partnership with American musician and designer Pharrell Williams.
Adidas has also expanded its athlete endorsements, recently signing Women’s NBA star Satou Sabally and college football standout Travis Hunter.
“Adidas is gaining significant U.S. market share through direct-to-consumer channels and sporting goods retail, especially with the success of the Terrace franchise (Samba, Gazelle),” said Bernstein analyst Aneesha Sherman. The strong sell-through of these models at full price during the holiday season underscores their popularity.
The Road Ahead: Can Adidas Sustain Its Momentum?
As Adidas continues its aggressive push into the U.S. market, its ability to maintain momentum against Nike and emerging competitors will be key. With strategic collaborations, strong product performance, and a focus on American consumers, Adidas is positioning itself for sustained growth in 2025.
Stay tuned for Adidas’ full-year earnings report on March 5, which will provide deeper insights into its strategy and future market prospects.
