Adidas Faces Bumps on the Road to Recovery

Adidas is in a bit of a tight spot. Their sales in North America took a hit, dropping by 5% in the third quarter. This isn't great news, but it's not all doom and gloom. The company's global sales actually grew by 3%, reaching a record 6. 63 billion euros. This growth is impressive, but it's not enough to make up for the loss of the Yeezy line. The Yeezy line, designed by the rapper Ye (formerly known as Kanye West), was a big money-maker for Adidas. But after Ye's antisemitic remarks, Adidas cut ties with him. This decision cost the company a lot. In 2023, Adidas reported an annual loss. They sold their last pair of Yeezy shoes at the end of 2024. But Adidas isn't sitting around feeling sorry for itself. They're fighting back. Sales of other products grew by 8% in North America, and by 12% globally. This shows that Adidas is still popular, even without Yeezy. The company is also dealing with other challenges. A stronger euro has hurt their sales by over 300 million euros. Plus, higher US tariffs are making things more expensive. But Adidas is trying to stay positive. They recently raised their annual profit outlook, saying they've managed to offset some of the extra costs. Adidas is also looking for new ways to grow. Their top-selling Samba sneakers have been a hit, but they know they can't rely on them forever. They're investing in new high-tech running shoes and marathon-winning athletes. This could be a game-changer. But it's not all smooth sailing. The sportswear industry is facing a lot of uncertainty. Higher US tariffs and a volatile global environment are making things tricky. This has hurt the shares of sportswear brands like Adidas and Nike. In the end, Adidas is in a tough spot. But they're not giving up. They're fighting back, looking for new opportunities, and trying to stay positive. It's a bumpy road, but they're still moving forward.