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Adidas forecasts higher profits this year as retro sneaker demand surges

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Bloomberg

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March 5, 2025

Adidas AG expects higher profits in 2025 as the German sports brand expands its lineup of retro sneakers, which have fueled renewed momentum in global sales.

According to a statement released Wednesday that builds on January’s preliminary fourth-quarter earnings report, the company projects an operating profit of €1.7 billion ($1.81 billion) to €1.8 billion this year. While this falls short of analysts’ €2.07 billion average estimate, Adidas is known for its conservative guidance, having raised its outlook three times last year.

The recent strong performance highlights the company’s recovery under CEO Bjørn Gulden, now in his third year leading the brand. The former Puma SE CEO is credited with managing the fallout from Adidas’ terminated partnership with rapper and designer Ye, formerly known as Kanye West. Investors have responded positively to Gulden’s back-to-basics approach, which focuses on sportswear and pragmatic product development. He aims to narrow the gap with Nike Inc., which, despite its struggles, remains the industry leader.

Retro sneakers drive Adidas’ revival

Demand continues to surge for retro sneaker models, including the Samba and Campus, which have helped revive the brand after a series of challenges in recent years. Adidas has also introduced additional throwback styles, such as the SL72 running shoe and Tokyo trainer, catering to the growing appetite for vintage designs.

Due to the sustained popularity of these models, Gulden has postponed the re-release of the 1970s-era Superstar basketball shoes, aiming to prevent oversaturation in the three-stripe sneaker market.

Beyond lifestyle footwear, Adidas is also seeing strong demand for its sports gear, particularly the Predator football boots and the Adizero running shoe franchise, the company said.

Global sales momentum and Yeezy exit

Adidas expects currency-neutral sales to grow at a high-single-digit rate in 2025, which is in line with analyst estimates. Excluding the now-defunct Yeezy franchise, the brand anticipates double-digit growth.

The company reported a 16% sales increase in Greater China and a 25% surge in Europe during the fourth quarter. North American sales rose 15%, marking a significant gain in a region long dominated by Nike, where Adidas has previously struggled.

Adidas completed the sale of its remaining Yeezy inventory in the fourth quarter, generating €650 million in revenue during 2024. The final sales occurred over two years after the brand severed ties with Ye.

Adidas shares have climbed about 32% over the past year, outperforming both Nike and Puma.



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UK consumers will vote with their purses if single-used plastic packaging glut continues

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Beware, UK retailers and brands aren’t doing enough to reduce the use of single-use plastic packaging, and consumers will vote with their purses if this goes on.

Image:Aquapak

New research shows 65% of UK consumers felt retail is falling short when it comes to cutting harmful plastic, with just 18% saying they are doing enough, according to sustainable packaging producer Aquapak.

The findings show that British shoppers want to see retailers take positive steps to reduce the impact of the packaging they use on the environment. Some 59% said they wanted to see the conventional plastic used in packaging replaced with an alternative material which can be recycled and doesn’t harm the environment.

Meanwhile, 57% said they should use more paper-based packaging which can go into kerbside recycling collections and 49% said that they should stop using traditional single-use plastic completely.
 
If such changes are not made, the findings suggest that consumers are happy to vote with their feet and purses. 

Over the next 12 months, 56% of those surveyed said they will try and buy more products that do not use single-use plastic packaging, such as polyethylene bags.  They are prepared to take even more extreme steps over the next three years, with 46% saying they will stop buying products that use single-use packaging and hard to recycle packaging altogether.  

For retailers and brands facing environmental challenges throughout the supply chain, they should take heart from the fact that 32% of consumers said that they would be prepared to pay more for packaging which is 100% recyclable. Of these, 43% said they would pay 5% more.

Some 30% said they would pay more for clothing and accessories packaged in recyclable material, with 41% of these saying that would also be happy to pay 5% more.

Mark Lapping, chief executive of Aquapak, said: “We recognise that businesses have many challenges to deal with when it comes sustainability, whether it is carbon, water or biodiversity but it is important that they don’t just pay lip service to new technologies but opt for real change.

“The good news is that there is a commercially proven solution that will make their plastic packaging problems disappear. We have developed Hydropol which can be incorporated into paper to create planet-friendly wrappers for dry foods, snacks and confectionery, or used as film to make garment bags, providing an alternative to current packaging which is hard to recycle and inconvenient for consumers.”

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Barbour International in Saturdays NYC collab for SS25

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Barbour International has collaborated with New York based lifestyle brand Saturdays NYC to create a three-piece capsule menswear collection for SS25.

The collection, made up of a lightweight wax jacket, a graphic sweatshirt and an oversized T-shirt, completes the Barbour International x Saturdays NYC collection available from 6 March through Barbour.com and selected stockists worldwide.
  
The collab link is inspired by Barbour International’s motorcycle heritage and Saturdays NYC’s city and surf roots. So the capsule collection “fuses both iconic brands seamlessly… present[ing] lasting quality through a modernised attitude”.

The key Lightweight Wax takes inspiration from Barbour’s original A7 jacket first introduced and created by Duncan Barbour in 1936, which became “synonymous amongst bikers back in the 1960s and 70s”. This reimagined style retains many of the original key details including the angled chest map pocket and robust functionality, we’re told. But it’s given a modern twist as it has been presented in a lighter-weight waxed cotton fabric. Finished with a dual branded logo and a shock-cord hem adjustment for more of a relaxed fit, this jacket is a synergy of both brands. 

Featuring a checkered monochrome graphic the sweatshirt “adds a bold statement to a contemporary look” while the graphic T-shirt exhibits Saturdays NYC’s “illusional graphics, with a reference to Barbour International’s black and yellow colour scheme”.

Saturdays NYC said of the second-time collaboration: “Barbour International is a brand that has inspired us since we started designing and to continue this partnership is an exciting commitment to design and craftmanship.” 
 

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Rip Curl owner KMD Brands names new CEO

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KMD Brands, owner of Rip Curl, Kathmandu, and Oboz, announced on Wednesday that Brent Scrimshaw will transition to the role of group chief executive officer and managing director, effective March 24.

Rip Curl

In his new role, Scrimshaw will work out of the Australia-headquartered company’s offices in Melbourne.

Outgoing KMD Brands CEO Michael Daly will step down March 25, and will remain on in a transitionary period with Scrimshaw until April 4.

A sports apparel veteran, Scrimshaw has been a director of KMD Brands since 2017 and global CEO of marketing services company, Enero, since 2020. Before that, the executive had a 19-year career at Nike, serving as vice president, EMEA brand marketing and core category business, and vice president and chief executive of Western Europe.

“I’m energised by the opportunity that lies ahead as I step into the group CEO role,” said ​Scrimshaw.

“Having spent 30 years building brands around the world, I’m excited to enable a strategic focus on deepening our consumer connections through bold and innovative product, all while amplifying the unique identity of our iconic brands. I look forward to collaborating with our talented teams to unlock KMD Brands’ next phase of growth.”

Daly first announced his planned departure from KMD Brands in October last year. Less than one month later, former Rip Curl CEO Brooke Farris also stepped down from her role after three years leading iconic surfwear brand.

 

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