Adidas capitalizes on Nike's weakness
As Nike forecasts a decline in annual sales, investors are concerned about its lag behind both established and emerging competitors.
The rising competition contrasts with Nike's limited innovation, expanding the range of options available to retailers, according to Cedric Rossi, next-generation consumer analyst at Bryan Garnier.
This situation, coupled with the successful resurgence of the Gazelle and Samba models, could boost Adidas' sales for the second quarter of the year, potentially marking the best profit margin in three years.
The German company aims to maintain customer interest with limited editions and innovative colors while also strengthening relationships with wholesale partners, Reuters reported in early July.