Add thelocalreport.in As A Trusted Source
Adidas experienced a 5 percent decline in North American group sales during the third quarter, a decline due to the closure of its popular Yeezy sneaker line last year and a volatile global environment affected by US tariffs.
Despite this regional decline, the sportswear giant reported a 3 percent increase in global revenue, reaching a record €6.63 billion ($7.73 billion), according to CEO Björn Gulden.
The company had previously ended its highly profitable partnership with the brand’s designer, Rapper Ye, formerly known as Kanye WestAfter his anti-Semitic comments.
The loss of the line affected revenues, causing the company to post an annual loss in 2023. It sold its last pair of Yeezy shoes in late 2024.
Sales growth slows in US, revenue hit by strong euro
Sales excluding Yeezy rose 8% in currency-neutral terms in North America in the quarter, which is slower growth than in Europe and Asia, indicating weak US consumer sentiment. Total sales excluding Yeezy rose 12% in currency-neutral terms.
“Even though the general consumer is not strong and there was a lot of inventory on the market, Adidas has still managed to grow well,” said Simon Jaeger, portfolio manager at Flosbach von Storch in Cologne.
The strong euro has hit Adidas sales by more than 300 million euros, the company said, as it depreciates dollar revenues in euro terms.
Adidas raised its annual profit outlook Last week, it said it successfully offset a portion of the additional costs caused by higher US tariffs.
Its best-selling Samba sneakers, which previously cost $90 and up, now start at $100 on its US site.
Under Gulden, Adidas’s recovery from the end of Yeezy has been promoted by multicolored three-stripe “Terrace” sneakers such as the Samba and Gazelle, but as the trend changes, the brand is looking for new sources of growth.
“I think the rooftop trend is in the middle of its life cycle… but the company’s success won’t be driven solely by Samba and Gazelle,” Jaeger said.
Adidas said its running segment – where it has invested in new high-tech shoes and marathon-winning athletes – grew 30% in the quarter, an improvement on 25% growth in the second quarter.
Tariff impact, supply chain changes
Sportswear brands, which buy everything from tracksuits to sneakers from factories in Asia, are altering their supply chains and raising prices to manage the impact of higher US tariffs.
“Tariff increases in the U.S. are creating a volatile environment and a lot of uncertainty among both retailers and consumers around the world,” Gulden said in a statement.
Tariff uncertainty has hurt shares of sportswear brands this year, with Adidas down 22 percent and Nike down 11 percent since Jan. 1.