Rishi Sunak, who was seen wearing Adidas Sambas was forced to apologize after fashionistas reacted so strongly.
The Prime Minister said to LBC, “I sincerely apologize to the Samba Community.” In my defense, I’d say that I’ve been wearing Adidas trainers, including Sambas, and other brands, for many years.
The trend for “terrace style” trainers has become so popular that the City of London is also taking note.
In a Monday note to investors, Morgan Stanley analysts Edouard Aubin, and Grace Smalley stated that the fashion pendulum has swung to Adidas in favour of sporting goods footwear. Fashion trends have notably changed from chunkier sneakers (which favored Nike) to terrace shoes which favour Adidas’ Samba Gazelle and Spezial categories.
Analysts also noted that Nike’s biggest competitor was lacking in “recent product innovation”, which could benefit Adidas.
Bankers in Frankfurt encouraged investors to purchase Adidas shares, which helped the share price increase by 4.8pc.
Morgan Stanley’s report suggests that German sportswear giant Adidas may have made a turn after a difficult and expensive breakup with rapper Kanye Web.
Adidas terminated a lucrative contract with rapper Kanye West at the end of 2022 due to a series of antisemitic remarks made by Mr West.
Adidas was forced to scramble in order to clear the mountain of stock, and its first annual loss in thirty years occurred in 2023.
The company is more optimistic about its prospects in 2024, citing a rise in demand for Samba and Gazelle footwear.
Mr Aubin, and Ms Smalley stated: “We anticipated it would be a lengthy and expensive journey in order to turn around Adidas’s prospects within an intensely competitive market.
We stand corrected, however, after completing our latest round of quarterly channel checks.
Sambas, and other “terrace style” shoes have gained in popularity since being worn by celebrities such as Bella Hadid and Harry Styles.
Adidas is the brand most closely associated with style, to Nike’s detriment.
Nike’s revenue was virtually flat in the three-month period ending 29 February, increasing from $12.39bn to $12.43bn.
This sluggish performance, however, has led to a fall in Nike’s shares. The share price of Nike has dropped by 12pc this year so far and by 26pc during the last year.
In March, Nike’s chief executive John Donahoe said to investors: “We are aware that Nike isn’t performing at its potential.”
He blames remote work for his company’s poor performance. In April, Mr Donahoe said to CNBC: “Our employees worked from home for over two years.” In retrospect, it appears that it is very difficult to create a disruptive, bold innovation.