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Adidas has claimed that demand for some of its shoes, including the Gazelle and Samba models, is so high that launches are being delayed to maintain the brand’s appeal, as the German sportswear group reported better-than-expected quarterly sales.
Chief Executive Bjørn Gulden said he was concerned that the market for the brand’s premium sneakers could “overheat” if Adidas released updated versions of its Superstar model too soon, and that the group would push back on releasing those versions.
“We have four [models] “These are now bestsellers at most retailers in most markets,” he said, describing the Superstar — which was originally released as a basketball shoe in 1969 — as “the greatest shoe Adidas ever had.” He said the new range needs to be launched at the right time. “We have to be disciplined.”
The demand for retro sneakers and especially the Samba model has increased significantly in recent years. The shoes recently made headlines in the UK after Prime Minister Rishi Sunak jokingly apologized after being photographed wearing a pair during an interview at Downing Street, and social media users accused him of undermining the model’s street credibility ruin. Gulden told reporters on Tuesday that the brand had had “no impact” on sales following the debate over Sunak’s shoe choice.
Gulden’s comments came weeks after it was announced that Adidas would no longer sponsor the German national soccer team, ending one of the oldest jersey partnerships in sports after being replaced by Nike.
Gulden pointed out that he believes Nike paid too much when it won the bidding war for the role as the new primary supplier starting in 2027. Citing media reports that Nike would pay more than 100 million euros per year to the German Football Association (DFB), Gulden claimed that the reported sum significantly exceeded any other previous sponsorship deal, and said that was the price Nike was paying appeared to be “much, much higher” than that agreed in comparable deals.
He said Adidas’ current contract with the DFB, worth €50 million a year, was already “the highest nominated contract in the entire industry”.
The DFB and Nike have not yet wanted to comment on the financial details of their partnership.
News of the Nike sponsorship sparked a nationwide outcry in Germany. Economics Minister Robert Habeck said he could “hardly imagine the German jersey without the three stripes” and called it “a piece of German identity.” Bavaria’s Prime Minister Markus Söder criticized the DFB and said German football should not be at the mercy of “global corporate battles”.
Gulden said he was “not upset at all” that Adidas had lost its sponsorship deal, which had existed since 1950. “They are allowed to sign big contracts,” he said, referring to the larger US competitor. He added that this was “a reasonable decision” for Adidas not to honor the offer. “We are a company that has to balance costs and sales.”
Gulden also said he didn’t expect the bumper deal to increase prices for similar sponsorship deals with other partners, “just for Nike.” [as] We will not pay these prices.”
Strong sales in Europe helped Adidas’ first-quarter results come in better than expected. Currency-adjusted sales rose 8 percent year-on-year between January and March, while operating profit increased more than fivefold to 336 million euros.
Adidas had already published part of its quarterly results at the beginning of the month. The share lost 1.6 percent to 228.60 euros on Tuesday afternoon.