Adidas’ ability to attract more American consumers from market leader Nike will be crucial to its continued success in 2025, according to investors and analysts. As uncertainty looms over consumer demand in China, many brands—including those in the luxury sector—are shifting their focus to the U.S. as a key growth market.
CEO Bjorn Gulden has revitalised Adidas since cutting ties with rapper Ye and discontinuing the Yeezy sneaker line in October 2022. Since his appointment was announced the following month, Adidas shares have surged by 160%. Investors will look to Gulden for insights into how the brand plans to sustain its market share gains from Nike while competing with rising sportswear brands like On Running and Hoka when Adidas reports its full-year results on 5 March.
Nike’s global sportswear market share declined from 15.2% in 2023 to 14.1% last year, while Adidas’ share rose from 8.2% to 8.9%, according to GlobalData. Other brands, including New Balance, On Running, and Hoka, also gained traction.
Historically, European brands have struggled in the U.S. market, and Adidas’ North American sales have lagged, particularly since the loss of its Yeezy line, which was highly popular in the region. In the third quarter of 2024, Adidas’ North American sales dropped by 7% year-on-year. However, analysts at UBS believe this trend could shift.
Despite this regional decline, Adidas’ overall sales rose by 19% in the quarter ending 31 December and by 12% for the full year, while Nike’s revenue fell by 9% in its latest quarter ending 30 November.
“The difference between Adidas and Nike’s growth is huge right now,” said Thomas Jökel, portfolio manager at Union Investment, an Adidas shareholder. He expects Adidas to sustain an annual sales growth of at least 10% as long as Nike continues to struggle, emphasising North America as a key battleground.
To strengthen its U.S. presence, Adidas has launched a “collegiate Americana”-inspired collaboration with Los Angeles-based label Sporty & Rich, as well as a new Superstar 92 sneaker with musician and designer Pharrell Williams. The brand has also signed high-profile athletes, including WNBA star Satou Sabally and college football player Travis Hunter.
“Adidas is making strong market share gains in the U.S. in direct-to-consumer and sporting goods retail, driven by the Terrace franchise (Samba, Gazelle), which has seen strong sell-through at full price through the holiday season,” said Bernstein analyst Aneesha Sherman.
As Adidas strengthens its foothold in the U.S. market, its ability to sustain growth and challenge Nike’s dominance remains a key focus for investors and analysts. By leveraging collaborations, athlete endorsements, and direct-to-consumer sales, the brand is positioning itself for long-term success. However, with rising competition from emerging sportswear brands like On Running and Hoka, maintaining this momentum will demand continuous innovation and strategic adaptability. As Adidas prepares to announce its full-year results on 5 March, all eyes will be on CEO Bjorn Gulden’s strategy to solidify the brand’s position as a leading force in the global sportswear industry.
