Adidas is capitalizing on the surging popularity of its classic footwear, particularly the Samba and Gazelle sneakers. However, the German sportswear giant is taking a measured approach to avoid a repeat of the Yeezy debacle.
Fueled by a nostalgic trend for "terrace shoes" – sneakers originally inspired by 1970s and 80s soccer fan culture – Adidas has significantly increased production of the Samba and Gazelle.
According to CEO Bjorn Gulden, sales have skyrocketed from a few hundred thousand pairs monthly at the beginning of 2023 to millions currently. The company is looking to further leverage this momentum.
While Adidas hasn't disclosed specific figures for the Samba, Gazelle, or Spezial models, their strong performance is credited with contributing to the company's positive first-quarter results.
These classic sneakers typically retail for around $90, with limited-edition collaborations reaching up to $350.
However, investors and analysts are watching closely to ensure Adidas doesn't become overly dependent on these specific styles. The recent, and costly, termination of the Yeezy collaboration with Kanye West serves as a stark reminder of the perils of relying on a single trend. The Yeezy line's abrupt end resulted in Adidas' first annual loss in three decades.
Adidas appears to be learning from past experiences. By strategically scaling production and maintaining a diverse product portfolio, they aim to sustain growth while mitigating the risks associated with overdependence on any single trend.
Source: Reuters
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