Adidas' retro-styled footwear is experiencing rapid sales.
Adidas reported a strong first-quarter performance in 2024, thanks to the booming sales of their retro-style shoes. Their net profit reached approximately $182 million, a significant turnaround from their $26 million loss during the same period in 2023. These iconic shoes, including the Samba sneakers and the Gazelle, have a rich history that dates back to the 1950s and 1960s.
The Samba sneakers were initially designed for a German soccer team who needed a sturdy pair of shoes to play on icy and snowy surfaces. Although they've evolved over time, the "3-zone profile" ( featuring the recognizable stripes) remains a unique feature of Adidas.
Similarly, the Gazelle sneakers, which were born in the 1960s, initially served as indoor sports shoes. However, they've since gained immense popularity and recognition.
Europe saw a 14% boost in sales for Adidas, with high demand for their shoes in China and Latin America. However, North America experienced a 4% decline in revenue due to excess inventory at retailers. Despite these challenges, Adidas remains optimistic. CEO Bjørn Gulden said, "We are making progress in all areas, and we'll continue to invest heavily in our products, brand, sales, and marketing to ensure growth."
The company is also looking forward to major sporting events like Euro 2024, Copa America, and the Olympics to further boost their sales. It's worth noting that Adidas' rival, Nike, recently signed a deal to supply official kits for the German national soccer team, effectively ending Adidas' partnership after over seven decades of collaborations resulting in four World Cup wins for the men's team.
This year, Adidas struggled, reporting a rare annual loss, and dealing with a tumultuous separation from rapper Ye, a slow sales period in North America, and a sizable tax bill. Yet, the company is optimistic about the future, as they've witnessed stronger growth in several regions.
Their signature shoes, the Samba and Gazelle, have captivated consumers for decades, embodying style and functionality. These classic designs with the iconic three stripes have surely played a significant role in Adidas' success.
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Source: edition.cnn.com
