Adidas vs Nike: Who’s Winning

Adidas is making moves while Nike struggles. Adidas increased its market share to 8.9% last year, up from 8.2%, while Nike slipped from 15.2% to 14.1%. With Adidas gaining ground and Nike losing momentum, keeping a close eye on whether this trend continues through 2025 is a must.

Nike's Loss, Adidas' Gain

Nike has been the king of sportswear for years, but cracks are starting to show. Its global market share is shrinking, and sales have been slipping—down 9% in its latest quarter ending November 30, 2023. Meanwhile, Adidas has been picking up the slack, along with brands like New Balance, On Running, and Hoka.

A big part of Adidas’ resurgence comes from CEO Bjorn Gulden’s leadership. Since Adidas cut ties with rapper Ye and scrapped the Yeezy line in 2022, its stock has skyrocketed 160%. That’s a clear sign that investors believe in the company’s strategy.

U.S. Biggest Sportswear Market In The World

Adidas is doing well globally, but North America is the real prize. The U.S. is the biggest sportswear market in the world, where people spend heavily on athletic gear. Historically, European brands have struggled to break through, and Adidas has faced its share of challenges. In Q3 2023, its North American sales were still down 7% year-over-year, largely due to the Yeezy fallout. But analysts at UBS think Adidas is turning the corner.

To make its mark, Adidas has been doubling down on U.S. marketing. The brand recently launched a ‘collegiate Americana’ collab with LA-based Sporty & Rich and released a new Superstar 92 sneaker with Pharrell Williams. It’s also signing high-profile U.S. athletes like WNBA star Satou Sabally and college football standout Travis Hunter to strengthen its presence in American sports.

Adidas vs. Nike: Who’s Winning?

The numbers tell the story: Nike’s sales are falling, Adidas’ are climbing. Adidas’ Q4 revenue jumped 19%, with full-year sales up 12% for 2024.

The difference between Adidas and Nike's growth is huge right now. Adidas can keep growing at a double-digit pace while Nike struggles, and the North American market will be key.

Adidas is making serious gains in direct-to-consumer and sporting goods retail, thanks to the strong demand for its Terrace franchise (Samba, Gazelle). Those sneakers have been flying off the shelves at full price, even during the holiday season.

Adidas is Winning Some Battles

Adidas is winning some battles, but the sportswear war is far from over. On Running and Hoka (owned by Deckers Brands) are expanding fast, eating into both Adidas’ and Nike’s market share. Puma and New Balance are also gaining traction, making the competition fiercer than ever.

Then there’s China. Adidas and Nike have both relied on Chinese shoppers for years, but the market is shaky. Shifting consumer behavior means brands can’t count on China like they used to. That’s why Adidas, along with many others, is doubling down on the U.S. and Western markets for 2025 growth.

Can Adidas Keep Up the Momentum?

The real test for Adidas is whether the brand can keep growing while Nike tries to recover. You'll want to wait and see when Adidas releases its full-year earnings report on March 5.

Key Takeaways

• Adidas' market share is rising while Nike's is slipping, signaling a potential shift in the industry
• CEO Bjorn Gulden’s leadership has been a major factor in Adidas' turnaround, with the company’s stock rising 160% since 2022.
• The U.S. market remains critical, with Adidas increasing its marketing efforts and signing key athletes to boost brand presence.
• Competition is heating up, with brands like On Running and Hoka gaining traction.
• Chinese market is pushing Adidas to focus more on Western growth opportunities.
• The next few months will be crucial in determining whether Adidas can maintain its momentum and challenge Nike’s dominance.