Losing $530 million in revenue due to splitting with Yeezy, adidas is giving Nike a boost in sales with a hole in the market.
Nike has long run the domain of the sneaker industry with Jordan Brand and their regular inline releases making The Swoosh the most valued sportswear brand on the planet by a longshot, although there was a point in time where adidas was able to chip away at Nike’s market share thanks to the former partnership with Ye and his Yeezy label. Now that this collaboration has come to an end, adidas is facing big financial losses and losing its market share once again to Nike. To put actual numbers on this, Wedbush analyst Tom Nikic stated that The Three Stripes is set to lose $530 million (10% of its total revenue).
Nikic also noted that due to the large presence Yeezy releases normally have in the holiday season, Nike will be able to take over this hole in the market as the release calendar for Nike and Jordan Brand has plenty of high-heat items that are expected to sell out. This will be a big benefit to The Swoosh after the company reported a 22% decrease in its net income (around $1.5 billion) for the first fiscal quarter of 2023.
As we know by now, adidas is still set to release Yeezy sneaker designs come 2023 just without the name and logo we’re used to seeing on the silhouettes, however, the lack of an impactful holiday release calendar hinders their growth in the marketplace. These challenges alongside reports of production numbers getting slashed in the Summer of 2023 from all major footwear brands will be a challenge for incoming CEO Bjørn Gulden who has had a great history with The Three Stripes rival Puma. We’ll have to keep our eye on adidas’ 2023 plans to see if their gamble on releasing Yeezy designs without the backing of Ye will prove successful, so keep it locked to our Twitter and the Sole Retriever mobile app to stay updated on the latest in the sneaker and streetwear world.