Adidas is Gaining Ground on Nike in the US

Adidas has released its 2016 financial report and it looks very, very positive for the German sportswear manufacturer. According to the brand the past year was “exceptionally successful”, with their revenues rising 14%, passing the €1 billion mark for the first time in the company’s history.

Adidas CEO Kasper Rorsted stated that: “We are not a fashion company. Of course we like to have fashionable products, but we are a sports company.” But what made the past year so extremely successful were the lifestyle products and not the performance products. The sales of lifestyle items grew 45%, performance wear on the other hand just grew 13% overall.

Sales of their retro sneakers like the iconic Superstars or Stan Smiths have boomed last year. Adidas gained some ground on their main competitor in the US market, Nike. Although Adidas has more than doubled its share in the US, that still only constitutes a 10% market share. Nike has that market pretty much covered.

Customers these days want style, and if Adidas continues to make fashionable products, the sales should further go up. “We have improved the desirability of our brands and products around the globe,” said Adidas CEO Kasper Rorsted. “As a consequence, we were able to increase revenues strongly and achieve a record net income of more than 1 billion euros for the first time in the history of our company.”

The German brand will further invest in its efforts In the US market and chip away on Nike’s market dominance. Going forward, Adidas expects sales to increase further, up to between 11 and 13 percent for 2017. Net income will also grow between 20 percent and 22 percent on average per year until 2020.