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‘This will normalize’: What Adidas’ Q3 reveals about the broader footwear market

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‘This will normalize’: What Adidas’ Q3 reveals about the broader footwear market

CEO Bjørn Gulden acknowledged difficulties in the lifestyle footwear market but said growth won’t happen until “the market is clean.”

Last week, Adidas put out Q3 results in line with its preliminary expectations for record sales and profits. Revenue was up 9% year over year with even stronger trends in DTC, which grew 17% year over year.

CEO Bjørn Gulden said on a call with analysts that net sales have grown every quarter since Q1 of 2024, and the retailer has also notched an operating profit each quarter during that timeframe. The biggest challenge the brand is facing right now is the state of the market itself.

“The lifestyle footwear market is currently difficult and yes, you see a lot of discounts,” Gulden said. “Of course it is difficult then to plan growth in the lifestyle footwear market currently. But that’s why it’s so important then to grow in the performance footwear market — and that’s what we’re doing.”

Adidas’ performance category was up 14% on a currency neutral basis in Q3, while lifestyle rose a more modest 3%. The results mirror a trend Nike called out in its own Q3 earnings a month ago, when the activewear giant acknowledged it had oversupplied the Jordan brand and would need to pull back on launches going forward.

That specter will haunt Adidas’ results for the next few quarters, according to Gulden, who predicted the lifestyle market might improve in the back half of next year but stressed that it’s highly dependent on the actions of Adidas’ competitors.


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