LONDON (Reuters) – As Adidas aims to build on hot demand for its three-striped white and black Samba and multi-coloured Gazelle sneakers, it’s also taking steps to prevent the shoes from becoming victims of their own success.
The German sportswear giant ramped up production of the sneakers, known as “terrace shoes” and inspired by soccer fans’ footwear in the 1970s and 80s. Sales subsequently jumped from a couple of hundred thousand pairs a month at the start of last year to millions of pairs a month, according to CEO Bjorn Gulden, with Adidas now looking to further increase their popularity.
The company said terrace shoe sales helped drive its strong performance in the first quarter, without giving detailed figures for the Samba, Gazelle and Spezial. The shoes are priced at around $90 and up, with limited edition collaborations costing up to $350.
The Adidas Samba won Footwear News’ 2023 “Shoe of the Year” award, the first win for the brand since the Yeezy Boost 350 in 2015.
Bernstein analyst Aneesha Sherman estimates the terrace shoes will drive 1.5 billion euros ($1.61 billion) of sales this year, around 7% of Adidas’ overall revenue and close to the 1.7 billion euros Yeezy brought in at its peak.
She predicts terrace shoe sales will likely peak in all regions this year.
“Obviously and clearly, this trend will not last forever,” said Thomas Joekel, portfolio manager at Frankfurt-based asset manager Union Investment, which holds Adidas shares.
In conclusion, the Adidas Samba slump presents both challenges and opportunities for the company to demonstrate its resilience and adaptability. By implementing strategic initiatives focused on marketing, innovation, and customer engagement, Adidas can effectively navigate the Samba slump and emerge stronger than before.
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