Executive Briefings

Adidas Banks on Sports as Lifestyle to Drive U.S. Sales

Adidas set a target last week for sales in North America to rise by almost half by 2020, predicting strong demand will continue for fashion sneakers after its retro Superstar was the top selling shoe in the U.S. market in 2016.

The revival of the German brand has been hurting rivals Nike and Under Armour but some investors are concerned that Adidas is too reliant on fickle trends such as the recent popularity of its Superstar and Stan Smith shoes.

Chief Executive Kasper Rorsted said the North American market is the "biggest challenge and the biggest opportunity" for Adidas, targeting sales of 5bn euros ($5.37bn) by 2020, after a 24 percent jump to 3.4bn euros ($3.65bn) in 2016.

Shares in Adidas soared early this month after the company increased sales and profit forecasts, targeting total sales of 25bn to 27bn euros ($26.86bn to $29bn) by 2020.

Rorsted said that the fashion-driven Originals business, which includes the retro brands such as Superstars, had grown 80 percent in North America in 2016.

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The revival of the German brand has been hurting rivals Nike and Under Armour but some investors are concerned that Adidas is too reliant on fickle trends such as the recent popularity of its Superstar and Stan Smith shoes.

Chief Executive Kasper Rorsted said the North American market is the "biggest challenge and the biggest opportunity" for Adidas, targeting sales of 5bn euros ($5.37bn) by 2020, after a 24 percent jump to 3.4bn euros ($3.65bn) in 2016.

Shares in Adidas soared early this month after the company increased sales and profit forecasts, targeting total sales of 25bn to 27bn euros ($26.86bn to $29bn) by 2020.

Rorsted said that the fashion-driven Originals business, which includes the retro brands such as Superstars, had grown 80 percent in North America in 2016.

Read Full Article