Adidas sees slower sales growth as retro shoes wane in Europe
German sportswear maker got a boost in recent years from Stan Smith and Superstar kicks
Stuttgart: Adidas AG expects sales growth to slow this year as the retro footwear boom loses momentum on the company’s European home turf.
The German sportswear maker has gotten a boost in recent years from reissues of Stan Smith tennis shoes and Superstar basketball kicks.
As sales of those models ease, Kanye West’s Yeezy line, which became more widely available in late 2018, has not yet taken over the baton.
Sales growth this year will be as much as 3 percentage points behind 2018’s 8 per cent, the company said Wednesday. Adidas is facing growing momentum from arch-rival Nike Inc., which is benefiting from a raft of hot-selling new products.
Adidas has been struggling in Europe, where sales fell in 2018. The outlook for the region calls for a “slight increase” in sales, adjusted for currency swings.
The company’s full-year growth rate will also probably suffer by 1 to 2 percentage points because of supply chain shortages in North America, it said. That’ll prevent Adidas from meeting the ‘strong increase’ in demand for mid-priced apparel, the company said.
Chief Executive Officer Kasper Rorsted has voiced optimism of late, saying he’s addressing the problems in Europe and that the Chinese market is growing so fast — despite concerns about the country’s economy — that it can support increasing sales at both Adidas and Nike.
Adidas proposed a dividend of €3.35 a share for last year, surpassing the average analyst estimate. Adidas also plans to buy back €800 million ($902 million) of shares this year.