Sourav Choudhary Adidas is capturing a larger share of the U.S. sportswear market as Nike faces hurdles, signaling a potential shift in industry dynamics.
Adidas has made significant inroads into the U.S. sportswear market, capitalizing on challenges faced by industry leader Nike. Under the leadership of CEO Bjorn Gulden, appointed in late 2022, Adidas has seen its global market share rise to 8.9% in 2024, up from 8.2% the previous year. In contrast, Nike’s share declined to 14.1% from 15.2% during the same period.
This shift comes as Adidas moves beyond its classic Samba and Gazelle sneakers, launching collaborations with American labels like Sporty & Rich and partnering with artists such as Pharrell Williams. The brand has also signed prominent athletes, including WNBA player Satou Sabally and college football standout Travis Hunter, to strengthen its U.S. presence.
Nike, meanwhile, has encountered supply chain disruptions and market saturation, particularly within its Jordan brand, leading to a 10% revenue drop and a 28% profit decline in the latest quarter. The company’s strategy of releasing limited-edition sneakers has backfired, resulting in an oversupplied market and diminished product exclusivity.
The appointment of new CEO Elliott Hill in October 2024 marks a pivotal moment for Nike. Hill is expected to unveil a comprehensive turnaround plan focusing on innovation and improved retailer relationships to regain market share.
The evolving landscape also features emerging competitors like On Running and Hoka, which have collectively eroded a 20% market share previously held by Nike and Adidas.
As Adidas prepares to report its full-year results on March 5, investors are keen to see how the brand plans to sustain its U.S. momentum and navigate challenges from both established and emerging competitors
