Good morning, pals! Happy New Year! Welcome again to The Kicks You Wear. Thanks a lot for studying at the moment. I admire you giving me a little bit of your time.
I hope you’ve had an awesome week thus far! That first week of the brand new yr is all the time a bizarre one. Getting again into the swing of issues is all the time a little bit of a course of, proper? Hopefully, issues are going properly for you!
QUICK HITS:
Now, let’s dive in.
Adidas Needs Its Next Big Thing
It wouldn’t be a stretch to say that Adidas has been the strongest model in footwear over these previous few years. While Nike took a couple of steps again through the John Donahoe period, Adidas took simply as many ahead beneath Bjørn Gulden’s management.
With that mentioned, it additionally isn’t a stretch to say that Adidas at the moment finds itself in a little bit of a tenuous place.
What’s new: Bank of America hit Adidas with a double-downgrade this week, shifting the corporate’s ranking from “Buy” to “Underperform” in a transfer that despatched a shockwave all through the {industry}.
The why: The reasoning was two-fold.
- First, and most significantly, BofA famous that the sneaker {industry} is within the midst of a chronic downcylce after 20 years of what they referred to as the “casualisation trend,” which refers back to the relaxed shift in kinds we’ve seen over the previous couple of many years because of the streetwear, athleisure and sneaker increase. The analysts, led by Theirry Cota, are saying that period is coming to an finish.
- Second, analysts famous that as progress is slowing, Nike is making its comeback. As that occurs, there will probably be much less room for opponents to function within the ways in which they’ve over the previous couple of years. While Nike’s rise will assist the {industry}, it’ll additionally suck the air out of the room.
The numbers offered do replicate a legit slowdown with the sneakers {industry}’s natural gross sales progress solely reaching 2.37 % by means of three 2025’s first three fiscal quarters, in line with Bank of America’s gross sales information (the fourth quarter hasn’t been formally reported but).
What this implies: There’s a bigger dialog available concerning the general slowdown for the {industry} and the way this would possibly affect issues for years to return. We’ll contact extra on that quickly. But, on this specific publication, I’m concerned with interrogating this second for Adidas.
Zoom out: After separating from Yeezy, Adidas bounced again in a serious means with income reaching an organization file $25 billion for 2024. It utterly rebuilt its basis and located one thing that labored in its basic kinds — particularly the Samba. Not solely did that sneaker carry Adidas by means of its hardest interval, but it surely shifted industry-wide developments and made footballer trend cool.
Yes, however: That time is over. While BofA’s callout of the general sneaker market is definitely price heeding, for Adidas this has to function a warning signal that the fireplace isn’t as sizzling because it as soon as was. The Samba peaked in 2024. While the shoe has remained comparatively sizzling by means of the final yr, it’s coming down from the highs it as soon as skilled. As of now, Adidas nonetheless hasn’t discovered its subsequent bell cow.
- Pharrell’s Adidas Jellyfish had an enormous second final yr, but it surely was extraordinarily restricted and very costly. The shoe can’t be as ubiquitous because the Samba was.
- The Adistar Cushion 3 had a second final yr, but it surely doesn’t stand out as a Y2K mesh runner while you put it subsequent to an Asics or New Balance mannequin.
- The Adidas Superstar additionally took again a little bit of the highlight with a couple of strong collaborations final yr, but it surely’s a mannequin we’ve seen quite a few occasions earlier than.
The state of play: While Adidas has to get again on the ball, this definitely doesn’t imply it’s time to panic.
- Nike continues to be the corporate’s greatest competitor. While it’s making it’s comeback try now, it’s nowhere close to full. The Swoosh, itself, simply obtained a downgrade from Needham to “Hold” from “Buy.”
- There are alternatives for Adidas to catch momentum once more by means of huge sports activities moments just like the World Cup and the Milan Olympic Games.
- The {industry}, as an entire, faces fairly a little bit of uncertainty as a result of US’s tariff coverage and normal shopper malaise.
Amid all this chaos, there’s alternative. Adidas wants to determine what it’s subsequent huge factor is.
Nike’s RTFKT Dump
Virtual sneaker model RTFKT is not beneath the Nike umbrella. The Swoosh quietly offered the corporate in late December.
Details:
- The firm was offered to a thriller bidder. The purchaser nor the phrases of the sale have been publicly disclosed at this level.
- What they’re saying: “RTFKT transitioned to a new owner on Dec. 17, launching a new chapter for the company and its community,” Nike mentioned in a press release.
Why it mattered: Nike shocked the {industry} when it acquired RTFKT in 2021 on the peak of the NFT increase. RTFKT rose to prominence rapidly behind its buzzy NFTs and, for a second, it continued to take action beneath Nike’s umbrella by means of varied tasks.
The deal was praised as a kingmaking transfer for Nike through the peak of the metaverse hype. The acquisition supposedly confirmed simply how far forward of the curve Nike.
Why it doesn’t anymore: Consumer fatigue is the offender right here. The NFT market’s speculative bubble burst. Very few folks have been keen to pay cash for sneakers they’d by no means personal. By the time RTFKT produced precise, bodily merchandise, its second handed. It was solely a matter of time earlier than this occurred following Elliott Hill’s takeover in October of 2024.
The backside line: Nike’s gamble on RTFKT made sense. It’s of venture any firm would make, but it surely most likely leaned a bit too laborious into it. Remember, this was a model Nike touted as one in all its primary arms alongside Jordan Brand and Converse. The firm invested loads into the model.
Unfortunately, that funding by no means fairly materialised into something that mattered for Nike.
A Legit Suitor For Puma
Puma is among the greatest query marks for the sportswear {industry}. The model has seemingly been flirting with a sale for the final calendar yr. Things could be getting severe quickly although.
The newest: Chinese sportswear firm Anta has reportedly made a severe supply to purchase the Pinault household’s 29 % stake in Puma, in line with the most recent from Reuters.
- Anta made the supply a couple of weeks in the past in December after securing the required financing to purchase Pinault’s stake.
- The deal stalled, nevertheless, with the Pinault household reportedly wanting for any supply to exceed greater than $47 per share.
What this implies: From the reporting on the market, it doesn’t really feel like the 2 sides are essentially near a deal. But this kind of information often doesn’t get out. The undeniable fact that we’ve got this reporting implies that somebody is shaking the desk to attempt to get issues rolling.
If I have been a betting man (which I’m not), I’d say it’s the Pinault household. There are a number of firms on the market concerned with their stake in Puma. Anta is clearly one, however there’ve additionally been studies about Li-Ning, Authentic Brands Group and even Japan’s Asics.
Why this issues: Now that it appears clear that Anta is severe about making a push for Puma, that may shake up the market sufficient to drive up that worth.
I’d guess this will get accomplished sooner quite than later.
Max B Loves Hoka
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In our final publication of 2025 I wrote a bit about Hoka needing to faucet in additional with celeb to carry a couple of extra eyes to its merchandise. We’re solely a couple of week into 2026 and it’s already occurring.
What’s new: The model has a brand new fan in New York-based rapper Max B.
- Max posted on X that he’s a brand new fan of Hoka. He mentioned he purchased 10 pairs of Hoka sneakers and liked them.
- Hoka teamed up with Footlocker to ship the rapper a number of new pairs so as to add to his assortment of 10.
Why this issues: This doesn’t really feel like one thing Hoka would’ve engaged with a yr or two in the past. The second would possibly’ve simply handed and the model wouldn’t have capitalised on it. Maybe Hoka would’ve been a bit too intellectual for somebody like Max B.
But that is the kind of small transfer that endears a model to on a regular basis shoppers. It provides Hoka a bit extra cultural credibility than it had yesterday, even when some individuals are roasting the sneakers within the feedback for how chunky they’re. Remember, as soon as upon a time, folks roasted Crocs, too. Now, the model is doing collaborations with Salehe Bembury and has employed Steven Smith as its head of innovation.
Good job, Hoka. Keep this up.
#TheKicksWeWear
This is the group part of the publication the place you (Yes, you!!!!) ship me your most closely fits and kicks from the week. Feel free to ship submissions to michael.sykes@businessoffashion.com or shoot me a message by way of social channels @MikeDSykes
First, the homie Chuck obtained us began with the Ice Blue AJ10s. Fantastic alternative, if I do say so myself.
The homie Shine adopted up with extra Jordan love. The Cool Grey 3s are so underrated, y’all.
The homie D Hudson popped out with the Lil Swamp JFG 610s. Can I inform y’all a secret? These could be my favorite Joe joints.
Then Big Sosa got here by means of for with essentially the most ADORABLE child dunks you’ll ever see to ship us house. Now THIS is the way you rejoice your second birthday! Happy birthday So!
SOOOOO STINKING CUTE.
Thanks for studying, gang!
If you will have any questions, feedback or considerations, attain out to me by way of e-mail at michael.sykes@businessoffashion.com or shoot me a message @MikeDSykes by way of socials.
Peace and love. Be secure, be simple, be form. We out.
-Sykes 💯