Adidas is witnessing a significant resurgence, notably in its wholesale business, having reported a notable 17 percent increase in currency-neutral revenue last quarter. This growth signals a revitalized partnership with key retailers like Foot Locker and JD Sports Fashion, which have reinstated their confidence in the brand.

Under the leadership of CEO Bjorn Gulden, Adidas has pivoted towards a back-to-basics strategy focused on sports, growing its footwear and apparel lines. This approach includes leveraging the rising popularity of timeless models such as the Samba and Gazelle. Gulden, who has been steering the company since January 2023, is now set to launch additional products that he believes will capture consumer interest further.

Adidas’s renewed retail strategy contrasts sharply with the challenges faced by its main competitor, Nike, which is struggling to maintain sales of flagship models like the Air Force 1 and Dunk sneakers. In contrast, Adidas has seen expanding sales across Europe and Latin America and 9% growth in Greater China. While sales dropped by 8% in North America—largely due to the diminished Yeezy line—excluding Yeezy, there was notable growth.

The pressure remains on Adidas to navigate the evolving landscape successfully. The company has scrapped the Yeezy line following controversies, but forecasts suggest its non-Yeezy segments may help it regain market share. Analysts project a further increase in forex-neutral sales, indicating a positive trajectory for the remaining months of 2024.