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German sportswear company Adidas took home $692 million USD in the first quarter of this year, beating original predictions. It is largely due to strong demand for its ‘classic’ shoe range.
Adidas surpasses expectations with its first quarterly financial report, jumping up in profits by 82%. The company earned a net profit of $692 million USD.
This number is better than initial predictions, which pitched a profit of $546 million USD. It’s also worth mentioning that the company had faced some controversy and turbulence as result of its falling out with Kanye West, having dropped his Yeezy line in 2024.
Adidas’ profits this quarter were completely independent of any Yeezy products, as the final stocks of Kanye’s shoes were sold at the end of last year due to his public antisemitism.
According to analysts, the uptake in revenue is largely down to demand for ‘retro’ sneakers within the brand’s collection. These include the Gazelle, Tokyo and Taekwondo variants of its shoes.
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This will be good news for Adidas, as it has been trying to gain back market share from Nike for many years. It also means that the company will likely be able to tackle Trump’s tariffs this year relatively unscathed.
In a press release, CEO Bjørn Gulden said: ‘I am very proud of what our team achieved in Q1. Double-digit growth across all markets and channels in today’s volatile environment shows the strength of our brand.’
The company also says it will be publishing its final set of financial results for the quarter on April 29, 2025. A conference call will take place.
Adidas finding success in its retro shoe designs shouldn’t come as too much of a surprise. As we’ve explored before, Gen Z are all about nostalgia and noughties trends, repurposing styles that have already come before and modernising them for a fresh look.
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