Adidas’ Turnaround Strategy Behind Their Strong Comeback

Hello Folks,

阿迪达斯 is back and stronger than ever! A recent case study from The Business of Fashion highlights the brand's most impressive comebacks following a major crisis two years ago that forced it to cut ties with its Yeezy line.

In October 2022, Adidas found itself in uncharted territory, ending a partnership that once contributed a massive 8% to its annual sales.

Adidas' partnership with Ye, the artist formerly known as Kanye West was a key strategy to compete with 耐克 ’s lineup of popular sneakers like Jordans. However, as Ye’s controversial statements increased, Adidas decided to end the collaboration. This decision not only created a nearly $2 billion gap in their finances but also severed their primary link to sneaker culture. Compounded by challenges such as closing stores in Russia due to the Ukraine conflict, the loss of Yeezy was a significant blow to the brand.

Fast-forward two years, and Adidas has pulled off an impressive turnaround. Instead of dwelling on its losses, it took bold steps to reclaim its position in the market. Today, the brand’s turnaround story is a testament to resilience and reinvention in the face of challenges.

In October 2024, Adidas raised its yearly forecasts for the third time, now expecting around 10% revenue growth and €1.2 billion ($1.31 billion) in profit. This strong outlook has renewed investor confidence, with the stock price more than doubling since the company discontinued its Yeezy line.

In an interview with The Business of Fashion at Adidas’ global headquarters in Herzogenaurach, Germany, chief executive Bjorn Gulden and other members of Adidas leadership revealed the secrets and strategies behind the company’s unlikely comeback. Their approach? Quick decision-making, leveraging the power of athletes to engage and inspire, and allowing internal teams freedom to focus on the quality of their output without the pressure of strict sales targets.

Under Gulden’s guidance, Adidas has returned to its athletic roots, reconnecting with the innovative spirit that made it a global icon—both on and off the field. This strategy wasn't just a product shift but a brand reset.

While the company had some tailwinds like resurging consumer interest in its Samba and Terrace sneakers, it had to make the right moves to capitalize on its opportunities.

“Turning a company around involves three key elements: luck, timing, and effort,” said CEO Gulden. “I can't say how much each played a role, but from the start, it was clear we had great potential that people hadn't noticed yet.”

“What Bj?rn brings is essentially two things: his obsession about the product and his completely different approach to wholesale partners [than the previous regime],” said Erwan Rambourg , global head of consumer and retail research at 汇丰 .

In this case study, BoF unpacks the steps Adidas took to change its trajectory, revive its brand and engineer one of the most remarkable turnarounds in recent fashion history. And this is how a challenge becomes a chance for growth.

Gulden’s leadership wasn’t just about keeping things steady; it redefined the company’s direction. It’s a powerful reminder that with the right strategy and a commitment to adapt, even the toughest setbacks can drive an impressive comeback.

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