Adidas Keeps Thriving in a Chaos-Filled Market
Good morning, friends! Welcome back to The Kicks You Wear. Thanks so much for reading today. I appreciate you giving me a bit of your time. Folks, I’ve been trapped in the house for days. The roads are still icy. Please send help — or just some heat, maybe. We could use a good melt here. I’m desperate. Quick hits: Alright. Let’s dive in. Adidas Seems Just FineBank of America made headline news a few weeks ago when it gave Adidas a double-downgrade rating from “buy” to “underperform.” The move shocked the industry. Here’s why: Adidas had been the “it” sportswear brand of the last few years, thanks to the success of the Samba. For the first time in a long time, it felt like that run was over. Not only that, but it also brought broader questions to the surface about the staying power of fashion’s casualisation era and whether its time was up.Fast-forward to this week, and it seems the company’s downfall was a bit overstated. Adidas is in record-breaking shape, according to preliminary results it released on Thursday. The numbers: Currency-neutral sales increased by 13 percent for the second consecutive year, according to the brand, bringing its revenue to €24.8 billion ($29.6 billion) for the 2025 fiscal year. Its operating profit for the 2025 fiscal year increased to €2.06 billion ($2.5 billion).On the heels of this growth, the company is launching a $1.2 billion stock buyback program that will start in early February. I don’t know about y’all, but that certainly doesn’t seem like a company showing signs of a slowdown or decline. It seems pretty far from it, actually. Zoom out: These numbers, alone, would be a solid sign for almost any brand. But they’re especially staggering considering the general state of the sportswear industry. Adidas’s peers have struggled mightily over the last few years, which is where much of the industry’s strife comes from. Nike is only just now beginning to emerge from its fog. The Swoosh saw its first growth in five quarters at the end of its fiscal second quarter in December. It also just slashed 775 more jobs (mostly in distribution) as it continues to restructure. The Pinault family just sold its stake in Puma to Anta after months of speculation and declining revenue. Under Armour has started 2026 well, but its stock slumped 40 percent last year as sales declined steadily. On top of individual struggles for these companies, there’s also been general economic uncertainty in the air, driven by declining consumer sentiment and aggressive US tariff policies — the latter of which affected Adidas. We’ll likely get more details on the impact’s significance when the company holds its full earnings call in March. The big picture: Despite these headwinds and the market’s general malaise, Adidas somehow managed to maintain its momentum. Gulden didn’t offer much detail on what’s worked in a statement released by the company, but the CEO did credit the company’s diverse product offerings as a key reason for its success. “We are lucky to be in an industry that sells consumer products for many segments,” he said in a statement issued by Adidas. “We are very confident that all these segments will continue to grow all over the world and we are also very confident that we will continue to take market share.” The other side: While these preliminary numbers are encouraging for Adidas, there are still things that need to be addressed. It still needs to find the next big thing to replace the Samba before that well runs completely dry. Maybe it’ll use the 2026 World Cup as the opportunity to do that.The company increased its prices in the back half of 2025 to combat tariff pressures. You have to wonder if that will eventually turn some consumers away. We’ll have a clearer picture of some of this in a few months as more consumer data emerges. Regardless, this is a fantastic start to 2026. Rolex’s New Golf PartnerRolex announced a new partnership with LIV Golf — the Saudi-backed golf league that launched in 2022. (Shutterstock) In quite a surprising turn of events, Swiss watchmaker Rolex announced a new partnership with LIV Golf — the Saudi-backed golf league that launched in 2022. Details: The deal between the two parties feels a bit unconventional in that it won’t be very visible. The agreement emphasises hospitality benefits for Rolex customers. They’ll have meet-and-greets with LIV golfers and on-course experiences at league events. Here’s where it gets interesting. Unlike its deal with the PGA, Rolex branding and imagery won’t be seen on course at LIV events. The deal doesn’t include broadcast branding or on-course signage. Rolex wants to be associated with LIV, but only at arm’s length, it seems. Between the lines: This deal is quite strange, but it’s aligned with how LIV has existed in the golf world since the league was founded. It was launched much to the dismay of many PGA fans and golf purists out there who saw the league as a mere sports-washing operation for Saudi Arabia’s public investment fund. Rolex is one of the most recognisable brands in the golf world. It’s a major sponsor for all four of the PGA’s major tournaments and has had brand deals with some of the association’s biggest names, including Tiger Woods, Jack Nicklaus and more. Be smart: Given that history, it’s easy to see why Rolex might not want to plaster its brand image all over LIV’s golf courses. There are still folks out there who won’t feel like that’s the most savoury move. Why it matters: LIV’s new deal with Rolex comes at a curious time. Several players who abandoned the PGA for big LIV deals are now reversing course. Names like Brooks Koepka, Patrick Reed, and even several “original” LIV members like Kevin Na are making their way back to the PGA. This is all happening while LIV is fighting to maintain its legitimacy in golf. This Rolex deal isn’t the most visible, but given its roots in the sport, it will go a long way toward maintaining LIV’s standing as a serious player. Lots of fans will surely take issue there, but that’s a problem they’ll need to take up with Rolex (and the PGA, itself, while they’re at it). Foot Locker’s All-Star Weekend TakeoverFebruary is turning out to be quite a big month for sports and fashion. The Super Bowl and the 2026 Milano Cortina Winter Olympics have taken up most headlines so far, but there’s also the NBA All-Star Game.Why it matters: From a sportswear perspective, the All-Star game has long been one of the biggest stages for brands to showcase what they have coming up over the next year. Nike, especially, has traditionally used All-Star weekend as a showcase to show off its upcoming signature shoes for its athletes. What’s happening: The same thing is happening at the 2026 All-Star game in Los Angeles, and it looks like Foot Locker will be at the center of it all. The company is hosting an activation it’s calling “Foot Locker Takeover” during All-Star weekend, where it’ll be hosting several brands and showing loads of product. Foot Locker will launch new colourways of:the Air Jordan 4, 5 and 6Converse’s Shai 001Puma’s MB.05 LoAdidas’ AE 2As Elliott Hill stated on Nike’s latest earnings call, the brand will have an outsized presence at this event, with exclusives made specifically for it tied to its three basketball brands. That feels unbelievable considering where the relationship between Nike and Foot Locker was just a few years ago. The big picture: What a moment this has to be for Foot Locker. The company’s presence at an event like this is par for the course, but there’s no way that I’d have ever expected it to be this central of a figure. Remember, just a few years ago we were discussing whether the company had a future at all. Considering where it’s relationship with Nike was at the time, that was a reasonable question. Now, it’s the tentpole for one of Nike’s biggest events this quarter as the footwear company works to restructure its brand. Look at how the tables have turned.An Under Armour Rebrand? Under Armour is launching two new silhouettes — the HB-Lo and Arc96 — on Feb. 4. (Under Armour) It’s not every day that you see an eye-catching non-performance lifestyle silhouette coming from Under Armour, but it seems times are changing. What’s new: UA is launching two new silhouettes — the HB-Lo and Arc96 — on Feb. 4. The HB-Lo is a low-cut shoe with an 1980s basketball vibe that has dominated sneaker culture for decades. On the other side, the Arc96 looks like a classic Y2K runner with a chunky outsole that almost looks like it comes in two pieces. What caught my attention about these shoes was how they used the Under Armour logo. This is the most exaggerated I’ve ever seen the UA monogram look. On both the lateral and medial sides of the shoe, the logo stretches across multiple panels. It’s a pretty creative use of it. Why this matters: Under Armour has needed a refresh (again) for quite a while. We might just be seeing the beginnings of one through a couple of new silhouettes. For the first time in a long time, we have something to talk about with this brand other than dumping Stephen Curry. That’s a pretty cool thing.#TheKicksWeWearThis is the community section of the newsletter where you (Yes, you!!!!) send me your best fits and kicks from the week. Feel free to send submissions to michael.sykes@businessoffashion.com or shoot me a message via social channels @MikeDSykesFirst, the homie Mustard got us going with these Herringbone Chucks. What a fun look at this classic. The homie Zodd kept things going with the Fear Air Jordan 4. I want to call these Oreos so bad, y’all. I know they’re not but can you blame me? It’s a fitting title. The homie Mark came through with his adorable cat in the Joe FreshGoods “Beneath The Surface” Rainier Boots. SUCH A NECESSARY SHOE RIGHT NOW. Then my OG Dre sent us home with the Vomero Plus Doernbecher joints. MAN. What a great shoe. Y’all smoked that. Good stuff, gang.Thanks for reading, gang! Have a great weekend. If you have any questions, comments or concerns, reach out to me via email at michael.sykes@businessoffashion.com or shoot me a message @MikeDSykes via socials. Peace and love. Be safe, be easy, be kind. We out.-Sykes 💯
