
Which Brands Have the Most Iconic Sneaker Lines?
Nike Inc. and Adidas AG lead the sneaker market, significantly outperforming other sportswear brands. Both companies rely heavily on their classic designs to drive sales, with Adidas recently showing strong growth.
Analysts from Morgan Stanley report that Adidas achieved a notable 15.8% organic sales growth in the quarter ending June 2024, surpassing competitors like Nike, which experienced flat growth, and Puma SE, which reported merely 2.1% growth.
In contrast to earlier quarters where Adidas’s growth was slower, the recent uptick highlights its ability to leverage emerging trends, particularly the rise of its “terrace” sneaker line. This trend, spearheaded by iconic models such as the Samba, Gazelle, and Spezial, has contributed significantly to Adidas’s growth. According to Morgan Stanley, sales of these models are expected to increase to 20 million pairs in 2024, up from 7 million in 2023, accounting for 40% of the company’s growth this year.
However, there are worries that the surge may have peaked by the second quarter of 2024, as indicated by a decline in online search interest. Nevertheless, Adidas’s wholesale sales for the third quarter of 2024 are projected to rise by 25% year-on-year, up from 17% in the previous quarter. Channel checks from Morgan Stanley reveal that demand for “terrace” models remains robust, particularly in Europe, where the trend originated before spreading to the U.S. and Asia.
The report also notes that Adidas has historically struggled to sustain the momentum of its key franchises compared to Nike, which has kept models like the Air Force 1 relevant for many years. However, under CEO Bjorn Gulden, who took the helm in January 2023, Adidas seems more committed to enhancing product longevity. The brand is adopting strategies like limited-edition collaborations and introducing new colors and innovations to refresh existing lines.