Adidas is getting back on track after Yeezy woes

“Our focus is now to continue this momentum and to build a solid platform for future growth and to make Adidas a great company again,” Gulden said.

Adidas stock dipped slightly on Wednesday but is up 20% since the start of the year, valuing the company at almost 40 billion euros ($43 billion).

Success in a crowded field

It is not easy to maintain momentum and capture consumer attention as a brand, especially in the sportswear sector.

Adidas might be thriving, but its biggest competitors are facing headwinds. Gulden joined Adidas from Puma, whose stock is down 16% this year. The German company recently lowered its annual profit forecast, blaming factors including higher freight costs and muted consumer sentiment, especially in China.

Nike’s stock price is down nearly 30% year-to-date. The sportswear giant, which recently appointed a new CEO, has been trying to execute a turnaround after seeing declining sales in recent quarters.

Matthew Quint, director of the Center on Global Brand Leadership at Columbia Business School, told BI the consumer landscape has also shifted and newer brands are taking market share.

“There’s so much more choice. Nike has struggled for a range of reasons, as we know now, and part of it is the growth of a company like On and Hoka,” Quint said, referring to these newer brands.

But one of the reasons Adidas is finding success in the increasingly competitive athleisure and footwear industry is the revival of retro styles such as the Adidas Samba, coronated the “It Shoe” of 2023.

When taking over the reins of the company last year, Gulden said that he would focus on wholesale and capitalize on the popularity of its classic sneaker silhouettes.

He has ramped up production of the Samba and Gazelle sneakers — a staple of the 1990s style that has become popular with Gen Z.