A surging Adidas is 'causing panic internally' at Nike

Calvin Saunders
September 20, 2017

Adidas has overtaken Jordan as the #2 brand in US sport footwear. That year, Adidas owned only 4% of the market but since then under new management, things have changed.

We're not going to use that same Kanye West quote, but you know it. adidas has soared past Jordan Brand to become the no. 2 sneaker brand in the United States behind Nike. Its premium-priced Air Jordan brand, with its Jumpman logo, was started in the mid-Eighties to take advantage of basketball great Michael Jordan's huge popularity.

"Nike let the Jordan business get overheated, which slowed down the liquidations", Powell told Benzinga, "The sentiment on Twitter is that Jordan is not cool anymore, which is overblown".

While Nike's Vapormax has been dubbed as the brand's answer to Adidas' Boost technology, Google Trends imply that Boost is outperforming Vapormax, as the latter has yet to contribute meaningfully to overall sales, failing to crack the 250 styles. "But there is no question that retro Jordans [are] not selling out immediately like they used to". They've been making big moves, all in the right direction.

More news: Bob Evans Farms, Inc. (NASDAQ:BOBE) Rating Reiterated by Maxim Group
More news: Penny saver: Gas prices blow back after Harvey, Irma increases
More news: DRC says it has opened inquiry into fatal shooting of Burundian refugees

Adidas's incredible turnaround is weighing on Nike shares.

Over the same eight-month period, per Rovell, Nike's share of the sneaker market dropped from 39 to 37 percent. Jordan increased from 9.4 percent in 2016 to a similar 9.5 percent this year. Adidas on the other hand has clocked a 50 percent gain on the year.

Adidas haven't been popping in the hood since Run DMC was still rocking the microphone 30 years ago, but even at its pinnacle the German based athletic footwear company could never keep up with the popularity of Nike or Michael Jordan's signature shoe.

Other reports by MaliBehiribAe

Discuss This Article