Adidas Faces Challenges Amidst Global Market Shifts

Adidas reported a 5% decline in North American sales in the third quarter, primarily due to the discontinuation of the Yeezy line and global market volatilities influenced by U.S. tariffs. However, the sportswear giant achieved a global revenue milestone of 6.63 billion euros, propelled by strong performances in European and Asian markets.

In the wake of severing ties with rapper Ye, formerly Kanye West, over antisemitic comments, Adidas has been working to recover from the financial impact caused by the loss of the Yeezy brand. Despite ending its relationship with the artist, the company reported an overall sales increase of 12% in currency-neutral terms.

To combat challenges, Adidas has shifted its focus towards new product lines and adjusted pricing strategies to mitigate tariff pressures. While the Samba and Gazelle sneakers continue to contribute to growth, Adidas is exploring additional sources for sustained success. The company's running shoe segment experienced significant growth, showcasing an increase of 30% in the third quarter.