Adidas Warns of 2024 Sales Decline in Overstocked North America Market 

An Adidas shop is seen amid the coronavirus pandemic in Berlin, Germany, April 20, 2020. (Reuters)
An Adidas shop is seen amid the coronavirus pandemic in Berlin, Germany, April 20, 2020. (Reuters)
TT
20

Adidas Warns of 2024 Sales Decline in Overstocked North America Market 

An Adidas shop is seen amid the coronavirus pandemic in Berlin, Germany, April 20, 2020. (Reuters)
An Adidas shop is seen amid the coronavirus pandemic in Berlin, Germany, April 20, 2020. (Reuters)

German sportswear giant Adidas said on Wednesday it expects a decline in its sales in North America this year, blaming a still-overstocked market there, as the company continues to sell off the sneakers from its axed Yeezy line.

Currency-neutral sales in North America are expected to decline at a mid-single-digit rate in 2024, with growth forecast in all other regions, Adidas said, announcing its final full-year results.

Adidas reported preliminary results for the year in late January and delivered a 2024 forecast far below analysts' expectations, as profits dwindle from a sell-off in its discontinued sneaker line with Kanye West.

"Although by far not good enough, 2023 ended better than what I had expected at the beginning of the year," chief executive Bjorn Gulden said.

The German retailer said its board would propose a dividend of 0.70 euros ($0.7650) per share, unchanged from last year, despite a difficult 2023, during which the company posted a net loss from continuing operations of 58 million euros.

Adidas is gambling that it can claw back market share from Nike and others even as demand for sportswear declines. It has benefited from a trend for low-rise suede "terrace" sneakers such as the Samba and Gazelle, and last year ramped up production.

Footwear sales grew by 8% over the fourth quarter, while apparel sales fell 13%.

"Things have clearly been going in the right direction at Adidas since Bjorn Gulden took over," said Thomas Joekel, portfolio manager at Union Investment. "Brand heat is increasing, which can also be seen from the fact that fewer products now have to be sold at a discount."



Pharrell Williams Teams with Nigo for Vuitton Show at the Louvre

A model presents a creation for the Louis Vuitton Menswear Ready-to-wear Fall-Winter 2025/2026 collection as part of the Paris Fashion Week, in Paris on January 21, 2025. (Photo by JULIEN DE ROSA / AFP)
A model presents a creation for the Louis Vuitton Menswear Ready-to-wear Fall-Winter 2025/2026 collection as part of the Paris Fashion Week, in Paris on January 21, 2025. (Photo by JULIEN DE ROSA / AFP)
TT
20

Pharrell Williams Teams with Nigo for Vuitton Show at the Louvre

A model presents a creation for the Louis Vuitton Menswear Ready-to-wear Fall-Winter 2025/2026 collection as part of the Paris Fashion Week, in Paris on January 21, 2025. (Photo by JULIEN DE ROSA / AFP)
A model presents a creation for the Louis Vuitton Menswear Ready-to-wear Fall-Winter 2025/2026 collection as part of the Paris Fashion Week, in Paris on January 21, 2025. (Photo by JULIEN DE ROSA / AFP)

Louis Vuitton men's creative director, Pharrell Williams, drew his audience to a rear courtyard of the Louvre Museum after dark on Tuesday for a fall-winter catwalk show, kicking off Paris Fashion Week with a line-up of jazzed up streetwear.
Models strode around the set to marching music, parading chunky wool suits, short bomber jackets, leather bermudas and coats in pastels, autumn tones and psychedelic renditions of the brand's signature logo patterns. There were colorful Speedy bags, lobster-claw charms, pearl embellishments, thick jewelry and utility pockets in suede leather. For this collection, Williams, who is also famous as a musician, teamed up with his longtime collaborator, Japanese fashion designer Nigo, currently creative director of another LVMH-owned label, Kenzo.
The pair have been active in street culture for decades, founding the label Billionaire Boys Club in 2003 and playing a role in streetwear's rise to prominence, blending music with fashion.
In the front row, LVMH CEO Bernard Arnault, who attended US President Donald Trump's inauguration on Monday, sat between his wife, Helene Mercier, and NBA basketball player Victor Wembanyama, tapping his foot to the music.
Paris men's Fashion Week runs through Jan. 26 and is followed by Haute Couture shows.
Globally, high-end labels are grappling with a rare slowdown in appetite for fashion and accessories, with the key Chinese market a particular source of concern, while hopes are pinned on the US market for growth this year.