Analyzing Adidas’ Steady Decline In North America

Nike has already stepped out of Adidas’s league, but the bigger question is if Under Armour can surpass Adidas. The Baltimore-based company has recently branched its apparel into yoga clothes as well as soccer/football footwear. The company also penned a deal with the supermodel Gisele Bundchen, further increasing the brand’s appeal towards women. The shares of Under Armour have surged up 60% this year, showing that the company is definitely putting a foothold in the North American market.

Many factors have seen the decline of Adidas in the North American market. A recent decline in golf sales, the constant injuries of basketball star Derrick Rose, and the underwhelming performances of Reebok have all helped this cause. The company’s decline in sales has seen Under Armour rack up more revenue in the United States over the past year. Under Armour’s increase of apparel sales and expansion into the women’s market have seen the company gain leaps and bounds on its competitors in the past year. Adding in the decline in sales in Russia makes for grim reading. Despite all of these failures, Adidas is still ranked second globally in sales, and still holds a huge image in Europe. The benefits through the World Cup’s replica ball sales will soften the blow, but the company is not looking at a bright future without reforms. Whatever may occur in the future, Adidas will always be remembered as a giant in sportswear-making, one which carries a name filled with significance.

Follow Saad on Twitter @PrezunesRashid.

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