Adidas continues its upward swing by announcing that the activewear brand expects to increase its North American sales by almost 50 percent by 2020, according to the Wall Street Journal (WSJ).
After an impressive 2016, the company announced yesterday its plan to up the ante by forecasting around $5.32 billion in North American sales by 2020, up from around $3.6 billion in 2016. As North American sales represent around 40 percent of the brand’s global sportswear market, it is no wonder that Adidas wants to focus on the specific region.
After switching up management and bringing in Kasper Rorsted as CEO, Adidas is poised to continue to take the athletic footwear world by the cleats.
“For 10 to 15 years we did not make sustainable progress in the U.S. We had good years, we had bad years, we had inconsistent years,” Rorsted told the WSJ. “We were unclear where we wanted to take the company.”
The brand’s effort to amp up sales comes at a time when Nike reigns over athletic brands in the U.S., driving Adidas’ desire to beat out Nike as number one.
“We note the largest delta between Nike and Adidas in terms of operating margin and returns on capital is created in North America,” according to Cowen and Company. “The brand’s new connection with the North American consumer is likely to create more difficulty for Under Armour to re-accelerate growth in North America in 2017 as the brand lacks a casual lifestyle presence for the time being.”