Adidas’ Samba and Puma’s Speedcat Are Slowing Down

(Bloomberg Opinion) – Do the US tariffs syllab the winning line of Adidas Samba?

Adidas AG, which transformed the humble three -striped sneakers into a global phenomenon, said that on Wednesday, from three months to June 30, weaker sales growth triggered a decrease of 10% in shares. This reflects the gloomy performance in other German sportswear manufacturer Puma SE, which fell to 21% after falling to 21% last week, and estimates that it would fall from a gross profit of approximately € 80 million ($ 92 million) this year.

Bjorn Gulden, Chairman of the Adidas Executive Officer, also referred to the tariffs that are expected to cost the company to € 200 million. It increases its appearance for the current financial year in 2024 with an increase of € 1.8 billion from € 1.7 billion to € from € 1.3 billion to € 1.8 billion and increases with the guidance habit of Gulden. While Adidas still manages to protect most of the products made for sale in the country, Adidas is still faced with extra costs for sneakers and clothes made in the main production zones such as Vietnam, where 30% of Adidas’s US imports are produced.

And this is not just the direct effect of tariffs on the appearance; Gulden said most concern about higher inflation that prevents US consumer expenditures.

US sales were organized for Adidas in the second quarter, while European revenue was damaged by the comparison of hot weather in June and a year ago in Germany’s UEFA Euro 2024 tournament. However, the slowdown and more cautious appearance reveal questions about whether Adidas can maintain its extraordinary run on terrace styles, including Gazelle and Handball Sports shoes, which are primarily managed by Samba. Puma’s Speedcat brand, meanwhile, caught the imagination of shoe posters.

Only looking at the feet of the peoples provides a hint. For the last two years, the majority has been thrown in Adidas, while Retro Nike Inc. His styles are rising. In addition, the increase in popularity is ASICS Corp’s Onitsuka Tiger. On Saturday, women wearing premium Japanese sneakers in the hairdresser salon sat on both sides. This reminds Samba in the brightest period. Little Wonder shares on Asics Corp, listed in Japan, performed better than competitors this year. The vans are also for a revival; The stocks in the parent VF Corp. rose to 24% on Wednesday after signs that his return was working.

Gulden acknowledged that Sambas had sold more slowly. However, this reflects that Adidas was struggling to produce enough to meet the demand a few years ago. He said that there are still markets where the popularity of the style is still increasing, but also gained a concussion when it comes to new surfaces such as metallic or animal prints.

However, according to the analysis of Stacey Widlitz at SW retail consultants, wider slowing and increasing the reduction of Adidas in the United States is concern.

There is another change that can work against Adidas. While sneakers have been directed by fashion trends for the last ten years, the sport itself has a greater impact, so the rise of brands like AG. This change also weakened Puma’s return efforts. Worse, it is the center of Nike CEO Elliott Hill’s strategic plan to help athletes work faster or higher jumps. Nike is still struggling with a pile of fashion sneakers that are still not sold, but there are some positive signs that once again become more obsessed with sports than the company. For example, the last repetition of Vomero running shoes has created $ 100 million sales since its release in February.

So Guiden has two tasks to stay ahead.

First, when it comes to fashion trends, it should ensure that it has styles to take over from Samba. Here, on a strong ground, for example, the superstar restarts and is based on the popularity of low -rise sneakers with the legacies in martial arts. Gulden said that some low -profile models, such as Taekwondo, are slower to get up, but now he won traction, especially in Japan and South Korea, and could be even greater next year. After restarting Samba and the superstar, the next classic to get an upgrade will be Stan Smith, the white tennis shoe, which gained popularity more than twenty years ago.

However, Gulden also has to translate some buzzing surrounding the Adidas brand in parallel with the success of the shoes worn by serious runners. Sales in the running unit of the company increased by 25% in the second quarter and led to a struggle to stock enough popular styles; The Deckers Outdoor Corp. New models will come next year. The ideal scenario is that one of them is a big fashion hit. There are some encouraging signs here, for example, the tendency to wear football boots on the street, of course above Adidas.

Gulden gives an almost instinctive feeling for the product – witnessing the legions of Oasis fans who just wear clothes of the group’s collaboration with Adidas. However, it faces a number of difficulties, including the effect of tariffs and the new return of Nike. Next year the World Cup in North America should help, but Nike’s house is on the grass and until then Hill will be on the market.

Puma’s shares have more than half this year; Adidas has lost more than 30% since February, and Nike finally gathered more than 40% of the hopes of finding its form once again. To keep the abundance of Nike and Nimbler rivals in the Gulf, Gulden needs to find a new father’s sneakers: your father’s really comfortable shoes.

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Andrea Felteded is a Bloomberg vision columnist covering consumer goods and retail sector. Previously, he was the correspondent of Financial Times.

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