Adidas has turned around its fortunes with a remarkable revenue of nearly 23.7 billion euros, driven by the unexpected popularity of the Samba sneaker.
Adidas has announced a strong financial comeback, closing its latest fiscal year with a remarkable revenue of nearly 23.7 billion euros and a profit of 824 million euros. This resurgence is significant for the German sportswear giant, particularly in light of its recent past, which was marred by substantial losses following its controversial partnership with rapper Ye and the subsequent withdrawal of the Yeezy line from the market in 2022. In 2023, the company reported losses amounting to 58 million euros, a stark contrast to its current healthy financial state.
Central to Adidas’ revival is the unexpected popularity of a long-standing footwear model: the Samba. Originally designed in the 1950s by founder Adolf (Adi) Dassler, the Samba has traditionally been recognized for its flat silhouette, brown sole, and the iconic three stripes on its side. Over the years, it has transformed into a fashion staple, especially among younger demographics.
Commenting on this trend, Ninke Bloemberg, a fashion curator at the Centraal Museum in Utrecht, noted, “Especially in times of uncertainty – which we currently face both geopolitically and economically – there is a longing for happier days.” She highlighted the 1990s as a particularly nostalgic decade when the Sambas first gained significant traction. The ability of the Samba to be produced in various colors also aligns with current trends, as consumers are seeking vibrancy during what many perceive as darker times.
Bloemberg likened the resurgence of the Samba to cyclical waves in fashion history. She explained, “Sometimes the focus in clothing is on the hips, and other times on a slim silhouette. You can see the same with shoes: first, soles became thicker and now they are becoming slimmer again. The flat Sambas are a reaction to that more generous sole.”
The shoe has gained popularity across various platforms, notably on social media. The revival truly began to gather pace in 2022 when high-profile figures such as Bella Hadid, Rihanna, Kendall Jenner, and Harry Styles were spotted wearing the shoes, contributing to their rise as a TikTok trend. Interestingly, the Samba’s popularity remained resilient despite the potential backlash from unexpected associations with figures like Rishi Sunak, the former Prime Minister of the United Kingdom. Bloemberg pointed out that such associations might not always benefit a brand, stating, “He was certainly not an influencer, and such a thing can be detrimental to your brand.” Nevertheless, the Samba thrived beyond this moment, growing even more in popularity.
Retail expert Tom Kikkert emphasized that Adidas’ success cannot solely be attributed to the Samba alone but also to its strategic positioning within the retail landscape. He noted that the company carefully selects which products are stocked in various retailers, helping to maintain an air of exclusivity. “Both Nike and Adidas carefully consider which retailers will carry which models,” Kikkert said, explaining how stores play a critical role in brand visibility and consumer accessibility.
In terms of production, the demand for Sambas has skyrocketed from an initial output of 50,000 pairs to a staggering 600,000 pairs, indicating the model’s widespread acceptance. Kikkert pointed out that when business is robust, profit margins soar, implicating that both Adidas and Nike are reaping substantial financial benefits as a result of their well-curated offerings in the market.
Overall, the financial revival of Adidas and the remarkable popularity of the Samba illustrate a strategic recovery for the brand amid challenges and changing consumer preferences.
Source: Noah Wire Services
