ADIDAS OVERTAKES JORDAN BRAND; YEEZY’S FAIL TO MOVE NEEDLE
Research firm NPD Group reported that Adidas (ADDYY) has overtaken Jordan Brand as the 2nd best seller of U.S. sport footwear (NKE, which they track separately from Jordan Brand, remains number one). ADDYY sales rose 41 and 45% respectively over the last 2 quarters, increasing the company’s market share to nearly 13% (NKE has 44%, Jordan Brand has 9.5%). The rapid growth is stunning when you consider the company had just 4% of the market and forced its CEO out, as recently as 2015. NPD Group’s Matt Powell said “I’ve never seen a brand in the sneaker industry grow this fast.”
Howie Long-Short: Basketball shoe sales were down 40% for the month of August, with UAA sales down 50%, Jordan Brand sales down 33% and NKE sales down mid-single digits. That trend didn’t seem to effect Adidas though, their basketball sneaker sales rose 40%. When you’re hot, you’re hot.
Fan Marino: “Yeezys jumped over the Jumpman”, but it has little to do with Kanye’s signature line. His sneakers are produced in such limited numbers, their sales don’t move the needle on the company bottom line. The Superstar, NMD and Stan Smith are driving the Adidas resurgence.