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Adidas increases profits thanks to vintage-inspired sneakers

Adidas increases profits thanks to vintage-inspired sneakers

(CNN) — Adidas' Samba and Gazelle sneakers may seem like they're from another decade, but they're the most popular shoes on sale right now.

The German sportswear company said sales of retro sneakers were “very strong and growing,” which helped boost first-quarter profits for the company, which is still trying to find its footing after dissolving its business partnership with rapper Ye.

Buoyed by the success of those sneakers, as well as increased demand for running, basketball and soccer shoes, Adidas achieved net profits of about $182 million during the first three months of 2024, a sharp swing compared to the same period last year when it reported a loss of $26 million. Million US dollars.

The history of Samba sneakers dates back to 1950s, when used by a German football team looking for a durable shoe to play in icy and snowy areas. While the actual design has been updated, the three stripes have become an iconic symbol of adidas.

The Gazelle sneaker, which also features the Three Stripes, dates back to 1918 The sixties They were originally designed for indoor sports before becoming one of the most popular pairs of shoes.

In particular, sales in Europe rose by 14%, and Adidas also saw strong demand for its products in China and Latin America. North America was a sore point for the brand, with revenues down 4% due to excess inventory at retailers.

“The markets remain volatile and not easy, but we feel we are making progress everywhere,” Adidas CEO Bjorn Gulden said in a statement. “We will continue to ‘over-invest’ in product, brand, sales and marketing to ensure continued growth.”

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Adidas confirmed its positive outlook for 2024, especially with the upcoming major sporting events, including the 2024 European Championship and the Copa America, in addition to the Olympic Games.

Its recent competitor is Nike I got the rights To be the official kit supplier for the German national football teams from 2027 to 2034, abruptly ending the sport's more than seven-decade partnership with Adidas, which spanned four World Cup victories for the men's team.

Last year, Adidas suffered a rare annual loss, hurt by the fallout from its costly split from rapper Ye, weak sales in North America and a huge tax bill.