Investors and analysts believe, Adidas's ability to attract more American shoppers away from market leader Nike will be crucial for its continued success this year, as the German brand seeks new growth sources beyond its popular Samba and Gazelle sneakers.

With uncertainty surrounding consumer demand recovery in China, many brands, including those in the luxury sector, are focusing more on US shoppers as a key growth driver for 2025.

Bjorn Gulden, CEO has been successful in revitalizing Adidas since the brand severed ties with rapper Ye and discontinued its lucrative Yeezy sneaker range in October 2022.

Investors expect Gulden to outline how Adidas plans to continue gaining market share from Nike while also competing with emerging sportswear brands like On Running and Hoka when it reports full-year results on March 5.

Nike's share in the global sportswear market share declined 14.1 per cent last year from 15.2 per cent in 2023, according to GlobalData. On the other hand, Adidas's market share increased to 8.9 per cent from 8.2 per cent, with gains also seen by New Balance, On Running, and Hoka.

According to UBS analysts, European brands have historically struggled to compete in the US, and North America has been a lagging region for Adidas recently, though they anticipate this trend reversing.

Adidas's North American sales, that declined by 7 per cent in Q3,FY24, from the previous year, have not fully recovered from the end of the Yeezy line, which was particularly popular in the US.

Overall, Adidas sales grew by 19 per cent during the quarter, and 12 per cent for the full year 2024, while Nike's sales declined by 9 per cent in its latest quarter ending November 30, 2024.

Currently, there’s a huge gap between Adidas and Nike growth, says, Thomas Jökel, Portfolio Manager, Union Investment, which holds Adidas shares.

Adidas's overall sales will continue to grow by at least 10 per cent annually as long as Nike faces challenges, adds Jökel, emphasizing, the US and broader North American market are key growth areas.

Actively targeting US consumers, Adidas recently launched an apparel and shoe collection inspired by ‘collegiate Americana’ in collaboration with Los Angeles-based label Sporty & Rich, and a new Superstar 92 sneaker collection with American musician and designer Pharrell Williams.

The brand has also signed Satsou Sabally, WNBA Player and Travis Hunter, College Football Player, as brand ambassadors.