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☆ Adidas event shut down by protestors as factory wages become hot-button issue for the sneaker and garment industry
▼ + stars: | 2023-03-23 | by ( Matthew Kish | ) www.businessinsider.com time to read: +5 min

Protestors on Thursday disrupted an event featuring Rupert Campbell, Adidas' top US executiveThe protestors allege Adidas has not paid Asian contract factory workers and demanded payment. A speaker rose roughly 40 minutes into the one-hour event and demanded Adidas pay wages he alleged are owed to contract factory workers in countries including Cambodia and Indonesia. The $11.7 million allegedly owed to Adidas workers comes from a report produced by trade unions and other industry groups. Before protestors disrupted the event, Adidas North American President Rupert spoke about his childhood and his career path. Ballinger noted several recent instances of factory workers getting restitution for unpaid wages, including at a Nike contract factory in Cambodia.

☆ Everything we know about Chinese app Temu. It sells a weird variety of things for cheap — and has some wondering if it's legit.
▼ + stars: | 2023-03-23 | by ( Grace Dean | Mary Hanbury | ) www.businessinsider.com time to read: +11 min

It's listed as the top free app in both the Google Play store and the Apple App Store, ahead of TikTok, Amazon, and Instagram. These cost savings can then be passed on to the consumer, a spokesperson for Temu told Insider. But for the average North American shopper, such low prices can actually be disconcerting, especially when they don't know much about Temu. A spokesperson for Temu told Insider that it uses its parent company's supply chain and logistics network to ship these items. Read more: I ordered my first 4 items off Chinese e-commerce app Temu and came away annoyed with the dozens of marketing emails sent after making a single purchase

☆ Nike outruns its competitors
▼ + stars: | 2023-03-22 | by ( ) www.reuters.com time to read: +2 min

Its challenges include unsold goods it has to shift, an 8% drop in year-on-year sales in China, and falling gross profit margins. Nike is nonetheless in a relatively enviable position. Nike is also sporting a five-year total shareholder return of 105%, where Adidas and Under Armour’s are both negative. Even with blips, that shows it has been a better long-term run for investors. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

Nike said its apparel inventory fell in the third quarter and expects to end fiscal 2023 with "healthy" inventory levels. Sales in Greater China fell about 8% even as the country eased pandemic-related restrictions, which is expected to benefit the company in the near term. Nike now expects reported revenue for the full year to increase in the high-single-digit range, compared with its previous forecast of growth in the mid single digits. In the fourth quarter, the company expects flat to low-single-digit revenue growth, compared with estimates of a 2.42% rise, according to IBES data from Refinitiv. Nike posted revenue of $12.39 billion in the third quarter beating estimates of $11.47 billion and reported a profit of 79 cents per share above estimates of 55 cents.

☆ Fanatics will become the NHL's official uniform supplier, replacing Adidas
▼ + stars: | 2023-03-21 | by ( Jessica Golden | ) www.cnbc.com time to read: +2 min

Fanatics will replace Adidas as the official uniform supplier for the National Hockey League starting with the 2024-2025 season, the league announced on Tuesday. The 10-year deal marks a deepening of the company's relationship with the NHL and the first time Fanatics branding will appear on official player uniforms in professional sports. Fanatics runs the NHL's e-commerce site with more than 90 million customers worldwide. In addition, Fanatics has long-standing relationships with more than 80 current and former hockey stars through its memorabilia and collectibles division. Fanatics said Tuesday it will manufacture the new NHL uniforms in Canada at the same factory that had been making the NHL's on-ice uniforms for the last three decades.

☆ Nike CEO highlights direct-to-consumer strategy the day after the company's big Foot Locker announcement
▼ + stars: | 2023-03-21 | by ( Matthew Kish | ) www.businessinsider.com time to read: +2 min

The report came a day after Foot Locker announced a "revitalized" wholesale partnership with Nike. Despite Foot Locker's announcement, Nike CEO John Donahoe touted the success of Nike's DTC approach. On Tuesday, Nike CEO John Donahoe moved to turn the attention of investors back to Nike's direct-to-consumer approach. In 2020, Nike announced Consumer Direct Acceleration, a business plan focused on direct, digital sales. On Monday, Foot Locker CEO Mary Dillon noted the sneaker chain had renewed its relationship with Nike.

March 20 (Reuters) - Nike is expected to report a rise in third-quarter revenue and grow its market share through 2023, helped by major rival Adidas' split with designer and rapper Kanye West that caused the German company to lose about $600 million in quarterly sales. Nike (NKE.N) is also expected to get a boost from higher sales of its Jordan Retros and some newer launches as the world's No. "There is an opportunity for Nike to pick more market from Adidas," said Jessica Ramirez, senior analyst at Jane Hali and Associates, adding that Adidas has not had as many bestsellers as Nike. Nike has also doubled down on its product lines such as the LeBron 20s and Nike Mercurial shoes, while also grabbing a bigger chunk of the growing China market. Still, Nike's margins are expected to be squeezed in the quarter as it continues to offer promotions and discounts to shed excess stock.

☆ Nike's aggressive use of noncompetes is stifling hiring at rivals and startups sneaker brands, insiders say
▼ + stars: | 2023-03-18 | by ( Matthew Kish | ) www.businessinsider.com time to read: +7 min

President Biden and the FTC want to get rid of noncompete agreements. Some former Nike workers remain subject to them. The same could be said of sportswear workers in Portland, Oregon. The same day Biden spoke to the nation, at least three former Nike workers were waiting for their noncompete agreements to end, according to a search of LinkedIn profiles. In sportswear, noncompetes have historically been used to guard industry secrets, which brands fight to protect.

☆ Nike and Lululemon are obliterating the competition when it comes to drawing customers to stores
▼ + stars: | 2023-03-17 | by ( Matthew Kish | ) www.businessinsider.com time to read: +3 min

Foot traffic at Nike and Lululemon stores increased each of the last three monthsDuring the same time period, foot traffic at sporting goods apparel stores decreased. Traffic increased more than 11% at Lululemon stores and nearly 6% at Nike stores while traffic at sporting goods apparel stores decreased by nearly 8%, according to a new report from Placer.ai, a retail analytics firm. The sporting goods apparel category for Placer.ai includes chains such as Dick's Sporting Goods and Hibbett. Lululemon stores host yoga classes. While foot traffic is increasing at Nike and Lululemon stores, in recent months several brands, including Nike, Adidas, and Allbirds, have signaled renewed interest in wholesale channels.

☆ Kanye West blunder puts Adidas in play
▼ + stars: | 2023-03-15 | by ( Aimee Donnellan | ) www.reuters.com time to read: +4 min

After a disastrous breakup with the musician formerly known as Kanye West, the $28 billion sneaker maker is slashing dividends and heading for the first loss in decades. Last year, Adidas spent 12.3% of its 22.5 billion euros of revenue on marketing and similar expenses. If it were to return to the 13.9% it allocated in 2015, it would add 2 billion euros of extra costs over the next five years, Breakingviews calculations show. Swooping on Adidas would allow the U.S. athleisure giant to dominate sportswear by servicing women and men across a wide spectrum of categories. Shares in Adidas were down 2.4% at 144.50 euros by 0859 GMT on March 15.

☆ Nike is facing a PR nightmare as Kyrie Irving, Ja Morant, and now Tom Sachs face scandals – but experts say partnerships with celebs and athletes will never go away
▼ + stars: | 2023-03-14 | by ( Matthew Kish | ) www.businessinsider.com time to read: +8 min

Curbed published a blistering story about Tom Sachs, a Nike collaborator, this week. As long as companies have partnered with celebrities, some endorsement deals have run aground, said Coresight Research CEO and founder Deborah Weinswig. Longtime sportswear industry analyst Matt Powell, who recently founded Spurwink River, said endorsement deals are "fraught with peril." "I thought for a while that brands were moving away from real celebrity endorsements," he told Insider. "We're talking about a very, very small percentage of celebrities who get endorsement deals who have that halo effect," Herzog said.

☆ This startup is one step closer to cracking the code on 3D printing shoes with a $3 million investment led by former Nike executives
▼ + stars: | 2023-03-13 | by ( Matthew Kish | ) www.businessinsider.com time to read: +5 min

The company makes 3D-printed footwear. Footwear manufacturing is inherently wasteful and time consuming. Hilos' technology works like this: When a customer purchases a shoe, Hilos makes another one available in a matter of days. Hilos makes soles from a type of plastic, technically TPU, or thermoplastic polyurethane, that is made from 80% recycled material. "If you started with the premise of, 'I want to make a new footwear company,' how would you do it?

☆ Forget Yeezys. Adidas' new CEO says Sambas and Gazelles are the 'hottest shoe in the market'
▼ + stars: | 2023-03-13 | by ( Danni Santana | ) www.businessinsider.com time to read: +3 min

Adidas Yeezy is gone, but Adidas terrace shoes like the Samba and Gazelle can pick up the slack. "It's something that if we manage it correctly, can be millions and millions of pairs," he said. Adidas Sambas, Gazelles, and Spezial sneakers, what the company calls Terrace shoes, are having a moment. Gulden called Sambas, Gazelles, and Spezials a very fast-growing "franchise" for Adidas. "I think it's something that if we manage it correctly, can be millions and millions of pairs," Gulden told analysts. "

☆ Top analysts are bullish on these five stocks in uncertain times
▼ + stars: | 2023-03-12 | by ( Tipranks.Com Staff | ) www.cnbc.com time to read: +6 min

Here are five stocks to weather the storm, according to Wall Street's top professionals on TipRanks, a platform that ranks analysts based on their past performance. Despite the ongoing pressures, cloud-based data warehouse company Snowflake (SNOW) delivered upbeat quarterly results. The company's fiscal 2023 fourth-quarter results missed expectations due to macro pressures, higher costs, supply chain issues and increased promotional activity. TD Cowen analyst Shaul Eyal remains bullish about Zscaler and reiterated a buy rating with a price target of $195 following the results. (See Zscaler Hedge Fund Trading Activity on TipRanks) Eyal holds the 15th position among more than 8,000 analysts on TipRanks.

☆ Adidas thinks this 74-year-old shoe can replace Yeezys
▼ + stars: | 2023-03-11 | by ( Danni Santana | ) www.businessinsider.com time to read: +3 min

☆ Nike and Adidas bet big on DTC over the past few years, but now both brands are pushing back into stores
▼ + stars: | 2023-03-10 | by ( Matthew Kish | ) www.businessinsider.com time to read: +3 min

For the past several years, Nike and Adidas focused on direct sales. In December, Nike reported quarterly earnings that showed its wholesale business grew faster than its direct business. Since 2017, Nike's direct business has grown 106%, and its wholesale business has grown 11%. "The business model going forward, surprise, surprise, of course, will be more service-oriented towards wholesale," Gulden said on a subsequent call with analysts. "But I think the way we go to market, I think it will be more wholesale first and then (direct sales) afterwards."

☆ How this former Adidas executive is tackling the biggest problem in footwear with biodegradable sneakers
▼ + stars: | 2023-03-10 | by ( Matthew Kish | ) www.businessinsider.com time to read: +5 min

"It's a first of its kind," Liedtke told Insider. The Unless shoe, which retails for $139, was made in partnership with Natural Fiber Welding, which makes various materials from natural products, including plants and minerals. Jonathan Leibson/Getty Images for ADIDAS"This is a game changer," industry analyst and ARCH-USA founder Chris Burns previously told Insider. "What's unique about what Eric has done in the footwear industry is paid attention to every single component of the shoe," Natural Fiber Welding President Steve Zika previously told Insider. Last April, Natural Fiber Welding announced an $85 million Series B investment round.

☆ Nike's use of noncompetes threatens to stifle hiring at rivals and startup sneaker brands
▼ + stars: | 2023-03-10 | by ( Matthew Kish | ) www.businessinsider.com time to read: +7 min

☆ Adidas has received over 500 offers for massive unsold Yeezy merchandise
▼ + stars: | 2023-03-10 | by ( Parija Kavilanz | ) edition.cnn.com time to read: +3 min

New York CNN —Adidas has received hundreds of offers for the mountain of unsold Yeezy shoes designed by Ye, the artist formerly known as Kanye West. That represents a potential €500 million ($527 million) hit to the company’s bottom line. To his point, demand in the secondary resale market for Yeezy shoes is surging. Mocadlo said Impossible Kicks has about $2 million in Yeezy sneaker inventory currently, about 10,000 pairs. Prices for Yeezy sneakers are climbing due to tighter supply, according to StockX, a leading sneaker resale platform.

☆ Adidas study calls out the 'ridiculous' things women must do to feel safe while running
▼ + stars: | 2023-03-10 | by ( Danni Santana | ) www.businessinsider.com time to read: +2 min

To highlight findings, Adidas also created a "The Ridiculous Run," YouTube video featuring runners. According to the study, about half of women fear being attacked while running outside. The study surveyed 9,000 runners — half women and half men — in seven countries and intends to highlight the many safety concerns of women while "calling for male education and allyship" to incite change. To highlight its findings, Adidas created "The Ridiculous Run" YouTube video, which features female runners running at night with cars and motorcycles escorting them for safety. The survey and "The Ridiculous Run" are part of Adidas' With Women We Run Initiative and partnership with White Ribbon.

☆ Adidas' new CEO came out swinging during his first press conference, calling out Nike's lack of innovation and defending the three stripes
▼ + stars: | 2023-03-09 | by ( Danni Santana | Matthew Kish | ) www.businessinsider.com time to read: +6 min

He stood up for Adidas' performance innovation pipeline while taking a shot at NikeAdidas is always compared to its larger rival Nike. But Gulden took issue with criticisms that Adidas is not innovating enough in its performance business. The Yeezy business is not coming backAdidas has not made a decision on what to do with its stockpile of Yeezys. Given Lorenzo's popularity, the underperformance of the Ivy Park line, and the end of Adidas' Yeezy business, Lorenzo could give the company a needed spark. Gulden took the stage Wednesday in front of a backdrop that featured Jesse Owens and Muhammad Ali, two sports icons and former Adidas athletes.

Gulden said Adidas was still deciding what to do with its stock of unsold Yeezy footwear. One option could be for Adidas to donate proceeds from the sale of repurposed Yeezy stock to charity, Gulden said. REUTERS/Shannon Stapleton 1 2 3The split cost Adidas 600 million euros ($632 million) in sales in the fourth quarter of 2022, and Yeezy shoes would have brought in an estimated $1.2 billion in revenue this year. Inventories came in at just under 6 billion euros at the end of December, up 49% from the previous year, including 400 million euros of Yeezy products. That, along with $200 million of one-off costs, would bring Adidas to a $700 million loss this year.

☆ Adidas Slashes Dividend as Problems Mount
▼ + stars: | 2023-03-08 | by ( Trefor Moss | ) www.wsj.com time to read: 1 min

Adidas said that revenues would decline by a single-digit percentage amount in 2023. HERZOGENAURACH, Germany—A slump in China and a $6 billion mountain of unsold products are among the challenges facing Adidas AG after a bruising 2022 in which it dumped its chief executive and ended a partnership with rapper Kanye West. The German sportswear giant’s revenue increased 6% last year to 22.5 billion euros, equivalent to $23.7 billion, while its net profit fell 83% to €254 million. For the fourth quarter, Adidas slumped to a €482 million loss and slashed its dividend. The results out Wednesday largely confirmed preliminary figures from the company’s profits warning in February.

☆ Adidas CEO promises turnaround after costly Yeezy split
▼ + stars: | 2023-03-08 | by ( Alexander Hübner | ) www.reuters.com time to read: +5 min

Gulden said Adidas is still deciding what to do with its stock of unsold Yeezy footwear. One option could be for Adidas to donate proceeds from the sale of repurposed Yeezy stock to charity, Gulden said. The split cost Adidas 600 million euros ($632 million) in sales in the fourth quarter of 2022, and Yeezy shoes would have brought in an estimated $1.2 billion in revenue this year. Inventories came in at just under 6 billion euros at the end of December, up 49% from the previous year, including 400 million euros of Yeezy products. In the fourth quarter of last year, currency-neutral revenue declined by 1%, taking into account a 600-million-euro loss after it stopped selling Yeezy shoes.

☆ Adidas to slash dividend after Kanye West split
▼ + stars: | 2023-03-08 | by ( Alexander Hübner | ) www.reuters.com time to read: +2 min

[1/3] Adidas merchandise is seen in an Adidas store on the day the German company terminated its partnership with the American rapper and designer Kanye West, now known as Ye, in Garden City, New York, U.S., October 25, 2022. REUTERS/Shannon StapletonBERLIN, March 8 (Reuters) - Adidas (ADSGn.DE) will slash its 2022 dividend, it said Wednesday, warning a split with rapper and fashion designer Kanye West could push it to its first annual loss in three decades this year. The company will recommend a dividend of 0.70 euros ($0.7374) per share at a May 11 annual general meeting, it said. Adidas is still dealing with the fallout from ending its partnership with West, which yielded the lucrative Yeezy sneaker line. Adidas said it is still deciding what to do with its stock of unsold Yeezy footwear.

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