Adidas reports another quarter of bumper sales growth in North America and China as it edges market share from rivals Nike and Under Armour with its retro styles and running sneakers. Kate King reports.
Using the past to grow the future Adidas is now outpacing Nike in both North America and China thanks in part to its retro style sneakers. The German sportswear firm raising its full year profit outlook, after reporting a bumper second quarter that saw overall sales nearly hit 6 billion dollars. SOUNDBITE (English) CITY INDEX, KEN ODELUGA, SAYING: "I think there's a digital part of this as well which they've managed to sort of really hone to perfection in terms of marketing side so that's really helping too. But really it's about their ability to sense what will actually work in the United States and I think really that's their secret sauce." In the slowing US market Nike remains at the front of the pack despite slipping two percentage points in April. But Adidas is closing the gap, doubling its share of the sport footwear market to 12.7 percent It's in Russia they're still struggling to leave a footprint, sales there fell 11 percent. And as the sportswear market becomes more competitive original brands are beginning to lose traction. On Tuesday, Under Armour shares slumped to a record-low after the company trimmed its sales forecast and said it would cut jobs and close stores and in June Nike said it would cut around two percent of its global workforce and eliminate a quarter of its shoe styles.