In 2023, Adidas faced a challenge many brands fear: it was teetering on the edge of financial disaster. Years of strategic missteps, high inventories, and the loss of its lucrative partnership with Kanye West (formerly known as Ye) left the German sportswear giant at a crossroads. However, under the leadership of new CEO Bjørn Gulden, Adidas the brand has mounted a remarkable turnaround, not by chasing trends, but by looking back at what made it iconic in the first place.
Gulden, a pragmatic leader with deep roots in the industry, took the reins at Adidas during a particularly turbulent time. His approach? A back-to-basics strategy, focusing on heritage products like the classic Samba and Gazelle sneakers, while reinvigorating relationships with retail partners. Adidas’ resurgence is a story of leadership, adaptability, and a timely embrace of the retro appeal that has once again captured the fashion world.
The Power of Nostalgia: Reviving the Samba
One of the most notable aspects of Adidas’ comeback is its successful tapping into the nostalgia trend. The Samba, originally designed as a football training shoe in the 1950s, found itself at the centre of a cultural renaissance in 2023. With its minimalist design, gum sole, and unmistakable three stripes, the Samba had never fully disappeared, but under Gulden’s leadership, it was elevated to new heights. Celebrities, influencers, and fashion-forward consumers quickly adopted it, turning the Samba into one of the hottest shoes of the year.
What makes the Samba’s resurgence even more impressive is the way Adidas the brand carefully managed its supply and marketing. Rather than flooding the market, Gulden ensured that demand outpaced supply, which in turn heightened the shoe’s desirability. This approach marked a stark contrast to the strategy used during the Yeezy era, where rapid production sometimes diluted exclusivity.
The embrace of the Samba also reflects a broader trend within fashion: a return to simplicity and authenticity. In a world oversaturated with hyper-designed, high-tech footwear, the Samba’s understated look feels refreshing. It’s a reminder that sometimes, the best innovations are simply those that have stood the test of time. Adidas understood this and leaned into it, making the Samba not just a shoe but a symbol of the brand’s comeback.
Leadership That Listens: Bjørn Gulden’s Role
When Bjørn Gulden stepped into the role of CEO, Adidas was in dire need of fresh leadership. The company had lost its way under the weight of excessive inventory and a damaged reputation following the Kanye West controversy. But Gulden brought a different perspective. Having previously worked at Adidas, as well as successfully leading Puma, he understood the DNA of sportswear brands and the importance of authenticity.
Gulden’s strategy was straightforward: reconnect Adidas with its roots and leverage what made it great in the first place. Instead of chasing the latest fads or relying heavily on collaborations with high-profile influencers, he pushed Adidas to focus on its core products and strengthen its retail partnerships. “Adidas used to be about sports,” Gulden noted in early statements, and his mission was to bring that focus back.
One of Gulden’s most effective moves was strengthening Adidas’ relationships with retail partners. For years, Adidas had been building its own direct-to-consumer channels, while brands like On Holding AG and Hoka were gaining traction in retail spaces. Gulden understood that to regain market share, Adidas needed retailers on its side. By working closely with chains like Foot Locker and JD Sports, Adidas was able to ensure prominent shelf space and a steady stream of products that consumers actually wanted, helping the brand regain credibility in key markets.
Crisis Management: The Yeezy Dilemma
The abrupt end of Adidas’ partnership with Kanye West in 2022 was a significant blow. Yeezy had become a cornerstone of Adidas’ business, accounting for as much as 50% of the company’s profits at its peak. However, following West’s controversial statements, Adidas the brand was left with hundreds of millions of euros worth of unsold Yeezy products, and more importantly, the task of distancing itself from the fallout while avoiding further financial damage.
Gulden’s handling of the Yeezy stockpile was deft. Instead of rushing to clear the inventory and risking further damage to the brand, Adidas took a considered approach. One of the ideas floated was to sell the remaining Yeezy products with a portion of the proceeds going to charity, positioning the company as socially responsible while addressing the financial hole left by the collapsed partnership(
This strategy not only salvaged a difficult situation but also reflected Gulden’s broader philosophy of balancing financial pragmatism with social responsibility.
Retail Relationships: Winning Back Trust
Another crucial aspect of Adidas’ resurgence has been its renewed focus on retail relationships. Over the last few years, major sportswear brands, including Adidas, have increasingly focused on their own e-commerce channels. While this strategy can work for powerhouse brands, it alienated retail partners who were left pushing newer, less-established labels. Gulden recognised that to compete with Nike and regain market share, Adidas needed to strengthen these relationships.
This retail-centric approach allowed Adidas to put its products back in front of a broader audience, and the results were almost immediate. In 2024, Adidas reported double-digit sales growth in Europe and Latin America, with the Samba and Gazelle sneakers leading the charge. North America proved more challenging, largely due to the absence of Yeezy, but Adidas still managed to see growth in its wholesale and direct-to-consumer channels when excluding Yeezy sales.
By re-engaging with retailers, Adidas also improved its standing with consumers, who once again saw Adidas products front and centre in stores. This move was essential in helping Adidas recover from years of stagnation, as it signalled that the brand was serious about rebuilding relationships and delivering products people wanted.
Conclusion: A Blueprint for Legacy Brands
Adidas’ turnaround offers valuable lessons for any brand facing a crisis. First and foremost, it demonstrates the importance of staying true to a brand’s core identity. For Adidas, that meant leaning into its rich history of sportswear and reviving classic models like the Samba, which had the dual effect of tapping into the nostalgia trend while also providing a timeless product with mass appeal.
It also highlights the critical role of leadership. Bjørn Gulden’s pragmatic, back-to-basics approach, combined with his understanding of both product and retail, was instrumental in pulling Adidas back from the brink. By focusing on what made Adidas great—iconic products, strong retail partnerships, and a commitment to sports—he not only revived the brand but also set it up for future growth.
Finally, Adidas’ handling of the Yeezy debacle underscores the importance of careful crisis management. By opting for a thoughtful approach to selling its leftover stock and donating proceeds to charity, Adidas was able to navigate a potentially disastrous situation with grace, further cementing its reputation as a brand that balances profitability with social responsibility.
In an industry as fast-paced and competitive as sportswear, it’s easy for even the biggest brands to lose their way. But Adidas has shown that with the right leadership and a renewed focus on authenticity, a legacy brand can not only survive but thrive.