Adidas e-sales and new shoe models in top form

By 2020, CEO Kasper Rorsted wants Adidas to top the €4 billion mark in online sales, which for the German sport brand would mean doubling its current e-tailing revenue. The group is up for the challenge. In the last quarter, all of Adidas’ economic indicators showed strong growth, with online sales leaping 53% compared to the previous year.

"Our e-tailing business has increased exceptionally, driven by our three leading international markets: the USA, China and Europe, said Rorsted during a conversation with financial analysts. The positive trend began last year and will continue in 2017, bolstered by investment resources which, as was already announced, are equivalent to €1.1 billion. A large slice of this investment capability is about to be deployed for the creation of the kind of infrastructure that is appropriate and necessary for our e-tailing operations to reach the 2020 objectives." The infrastructure Rorsted refers to is designed to cope with rising sales volumes and also to improve the profitability of Adidas' e-tail business.

Indeed, the online sales bonanza is one of the most striking features of Adidas' first quarter 2017 results, alongside the 30% growth of adidas Originals revenue in the quarter. Another significant, strategic linchpin of the group's current performance are the booming sales of the new Originals shoe models. "I think that the most remarkable message here is that we are experiencing 50% growth in our contemporary shoe franchises, said Rorsted. With the NMD, the Tubular, the Shadow and the EQT we are developing a landscape in which different franchises are at a different stage in their life cycle. We are aware that currently the ratio of old to new franchises is approximately 50-50."

A marketing approach which is confirmed in the sport category too, with the return of the Predator shoe this year.

Adidas e-sales and new shoe models in top form

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