The rivalry between Adidas and Nike has been growing more intense, especially since the Adidas x Kanye West partnership and Kanye West's recent "Facts" track. However, Adidas Group announced today that it'll be bumping its 2016 sales growth projection from 10-12% to 15%. Adidas also increased its net profits from operation up to 18%, which previously forecasted 10-12%. Investors labeled Adidas stock as "Strong brand momentum" and a catalyst for growth. The Three-stripes brand also reported a 17% bump in revenue ($5.4 Billion) during Q1 of 2016.
In comparison to Nike, who reported only an 8% increase in revenue ($7.6 Billion) during Q1, Adidas is growing at a faster rate and outperforming Nike. In fact, Adidas shares rose as high as 7% today, and were at a new all-time high. Nike shares are currently down almost 5% this year.
Although this is only a snapshot of 2016 and Nike still dominates in terms of market share and revenue, Adidas is off to an excellent start. The German brand has seen tremendous growth overseas and their with their celebrities partnerships with Kanye West and Pharrell Williams. The relaunch of its Stan Smith and Superstar sneaker has finally settled in and new footwear innovations like the NMD and Ultra Boost have helped Adidas progress forward, creating the retros of tomorrow.
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