Adidas’ Recovery Could Bank on a Retro Resurgence

Welcome back to FN Daily, where we break down the biggest stories happening in footwear and retail.

Today, we're talking about Adidas' retro resurgence , Rich Paul and New Balance’s plans to bring energy to sportswear and more layoffs at Nordstrom .

Here's what you need to know.

Retro Styles Could Jumpstart Adidas’ Recovery — But Innovation Is Crucial

Adidas has had a rough couple of quarters. Sales hits due to Covid-19, factory shutdowns, inventory excesses and the loss of its?Yeezy?partnership in?October 2022?have had a heavy toll on the German sportswear brand, which also faced a CEO?transition ?in January.

The label has also recently struggled with generating “brand heat,” according to a Tuesday note from WedBush analyst Tom Nikic . But according to the analyst, growing momentum for Adidas’ 90’s retro styles could be “green shoots,” or recovery indicators, for the brand moving forward.

“Certain ’90’s retro styles such as the Samba, Gazelle, and Campus have been gaining momentum,” Nikic wrote. “They’re generating significant buzz on social media, they’re among the best-selling styles on adidas.com, and online search trends for these franchises have exploded in recent weeks.”

Inside Agent Rich Paul and New Balance’s Plans to Bring Energy to Sportswear

Klutch Sports founder Rich Paul made headlines in December 2021 when he collaborated with New Balance on a footwear and apparel collection,?highlighted by a new-look 550 shoe . At the time, a sportswear giant teaming up with the head of a sports talent agency was unprecedented.

The partnership, however, was a natural one for Paul.

“Being an agent is at the bottom of my list, it’s not at the top. I’m not just an agent chasing commissions. I’m a creative at heart,” Paul told FN. “I wanted to build a business that was totally separate from the representation side, no different than when Mark Zuckerberg bought Instagram or when Jeff Bezos bought Whole Foods. No one’s trying to put a limit on them.”

This understanding of culture has come through on his latest venture, Klutch Athletics by New Balance , a sportswear brand created to support athlete needs throughout their entire athletic journey, from the youth level to the pros.

Nordstrom Makes More Cuts

Cutbacks continue to hit Nordstrom Inc .

After disclosing in late March that it was pulling out of Canada entirely, the Seattle-based retailer has begun laying off workers within its technology operations.

“As we continue to invest in technology as a critical area of our business, we have made the difficult decision to reduce our technology workforce, adjusting the team structure and eliminating certain roles to remain agile and operate more efficiently,” a spokesperson said Monday . “We are committed to treating impacted team members with respect and supporting them through this transition.”

Some context: The company has been recently impacted by steeper markdowns, sluggish sales results, bloated inventories and macroeconomic headwinds, and for the fourth quarter, reported declines on the both the top and bottom lines.

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