Adidas Q3 shows growth in performance footwear amid lifestyle market challenges

Adidas reported a 9% year-over-year revenue increase in its third quarter, driven by a 17% growth in direct-to-consumer sales, according to Retail Dive. CEO Bjørn Gulden noted that the company has achieved net sales growth and operating profits every quarter since early 2024.

Despite these gains, Gulden acknowledged ongoing challenges in the lifestyle footwear market, which is currently marked by heavy discounting and difficulty in planning growth. He emphasized the importance of focusing on the performance footwear segment, which grew 14% on a currency-neutral basis in Q3, compared to a 3% rise in lifestyle footwear.

This trend aligns with industry-wide observations, as data from Circana highlighted performance footwear as the main driver of growth in the broader footwear market. Running and sports like soccer and baseball are contributing to this expansion, supported by increased interest in wellness and active lifestyles.

Gulden predicted that the lifestyle footwear market might improve in the latter half of next year, but stressed that this recovery depends on competitors' actions and the overall market becoming 'clean.' This cautious outlook reflects similar concerns raised by Nike regarding oversupply issues in the lifestyle segment.

Looking ahead, Circana expects continued growth in footwear sales during the holiday season, with performance footwear likely maintaining its role as the primary growth engine in the industry.