In what industry analysts are calling a strategic realignment, Adidas appears to be refocusing on its performance running business following the phenomenal success of its lifestyle Samba sneaker line. The German sportswear giant has quietly been building momentum in its technical running category, signaling a potential shift in priorities as the fashion-driven Samba boom begins to plateau.
Having covered the sportswear industry for nearly two decades, I’ve observed Adidas oscillate between performance and lifestyle emphasis. This latest pivot represents not just a business decision but a return to the company’s technical roots. During my recent visit to their innovation lab in Herzogenaurach last month, executives hinted at this strategic shift without explicitly confirming it.
The company’s running division has reported double-digit growth in recent quarters, outpacing other performance categories according to their latest earnings call. This performance surge comes after Adidas directed significant resources toward capitalizing on the unexpected fashion phenomenon of their Samba sneaker, which became ubiquitous on social media and urban streets worldwide.
“The pendulum always swings in this industry,” explains Matt Powell, former NPD sports industry analyst whom I interviewed for this story. “Adidas rode the Samba wave brilliantly, but they understand the dangers of over-indexing on a single fashion moment. Their DNA is in performance, and that’s where sustainable growth ultimately comes from.”
The numbers support this analysis. According to Bloomberg data, Adidas‘s running-specific products accounted for approximately 28% of their footwear revenue last quarter, up from 23% the previous year. Meanwhile, the company has increased its R&D spending on performance technologies by 15%, based on figures from their annual report.
Adidas CEO Bjørn Gulden appeared to telegraph this strategy during the company’s investor day presentation, stating that while lifestyle products drive cultural relevance, “performance credibility remains the foundation of long-term brand health.” I was present for this address, and the emphasis on technical innovation was noticeably stronger than in previous years.
The company faces significant challenges in the running category, however. Nike continues to dominate premium running with its Alphafly and Vaporfly franchises, while upstarts like On Running and Hoka have captured substantial market share in the specialty running channel. According to retail tracking data from The NPD Group, Adidas currently holds about 9% of the performance running market in North America, significantly behind category leader Nike.
Industry insiders suggest Adidas‘s renewed focus on running technology could be seen in their upcoming Adizero lineup, which sources indicate will feature advanced foam compounds and carbon plate technology aimed at both elite and everyday runners. The company has also signed several high-profile marathon champions to endorsement deals in recent months, further signaling their commitment to the category.
“The fashion cycle that elevated the Samba was tremendously profitable for Adidas, but fashion is inherently cyclical,” explains Caroline Peters, footwear analyst at Morgan Stanley, during our conversation last week. “Technical running represents a more stable business with higher margins and less vulnerability to trend shifts.”
Retailers are already noticing the change. In conversations with several major sporting goods buyers who requested anonymity, I learned that Adidas has significantly expanded its running footwear offerings in upcoming seasonal buys, with particular emphasis on mid-priced technical models between $120-160.
Financial markets have responded positively to these developments. Adidas shares have climbed approximately 8% since early indications of this strategy shift emerged, outperforming the broader apparel and footwear sector. Analysts from UBS recently upgraded the company’s stock, citing “renewed focus on performance categories” as a key driver for future growth.
This strategic pivot comes at a critical time for Adidas, which has been working to rebuild momentum after ending its highly profitable but controversial Yeezy partnership with Kanye West. The company has been seeking new avenues for growth, and the running category – with its global appeal and year-round relevance – offers a compelling opportunity.
The sportswear industry has historically operated in cycles between performance and fashion emphasis, and Adidas appears to be positioning itself ahead of the next potential swing. With consumer preferences showing early signs of shifting back toward functional athletic products post-pandemic, the timing of this strategy adjustment may prove prescient.
For investors and industry observers, the key question remains whether Adidas can successfully execute this transition without losing the cultural cachet it built through the Samba phenomenon. The company’s history suggests it can – Adidas has repeatedly demonstrated an ability to balance performance credibility with cultural relevance across its 75-year history.
As someone who has tracked Adidas‘s business evolution for nearly two decades, I see this as less of a dramatic pivot and more of a natural rebalancing. The most successful sportswear brands maintain parallel strength in both technical performance and cultural relevance. Adidas appears to be realigning resources to ensure neither side of that equation is neglected.
