Adidas' Retro Revival: From Samba to Success

Adidas raised its annual sales and profit forecast due to strong third-quarter performance and brand momentum, driven by high demand for retro Samba and Gazelle shoes. The company now expects a 10% revenue increase for 2023 and upgraded its profit forecast to 1.2 billion euros.

Adidas has once again increased its sales and profit expectations for the year, attributing this adjustment to an unexpectedly strong performance in the third quarter. The sportswear giant is experiencing a revival, largely thanks to its retro-inspired Sambas and Gazelles, which are in high demand.

CEO Bjorn Gulden's efforts to rejuvenate the brand post-Yeezy breakup are showing results. Adidas now projects a 10% year-on-year increase in currency-neutral revenues, upgrading its profit forecast to 1.2 billion euros from an earlier estimate of 1 billion euros.

The surge in popularity of Adidas' terrace shoes has allowed the brand to gain market share from its competitor, Nike, which recently reported a decline in sales. However, Adidas has noted that sales of remaining Yeezy inventory will no longer contribute to profits by the fourth quarter.

(With inputs from agencies.)