Adidas Announces 2025 Strategy Without Yeezy

Adidas is implementing a significant strategic shift for 2025, focusing on growth and a new operating model without relying on Yeezy sales. The company has sold all remaining Yeezy inventory, as confirmed by CFO Harm Ohlmeyer.

Despite this, Adidas expects high-single-digit revenue growth in 2025, with opportunities to gain market share while its main competitor, Nike, faces challenges.

Key points of Adidas' strategy for 2025 include:

1. New operating model: Adidas aims to reduce complexity and give individual markets more autonomy in decision-making.

2. Job cuts: The company plans to cut up to 500 jobs at its corporate headquarters in Germany to streamline operations.

3. Localized approach: Adidas is focusing on strong local leadership and reducing bureaucracy to improve performance.

4. U.S. market strategy: The company is building creative centers in Portland and Los Angeles to better compete in the American market.

5. Financial outlook: Adidas projects operating profit to increase to between €1.7 billion and €1.8 billion in 2025.

6. Revenue growth: The company expects currency-neutral revenues to increase at a high-single-digit rate in 2025.

   
   

CEO Bjørn Gulden emphasized the importance of trust in local leadership, stating, "You don't need rules for everything when you trust people". This approach aims to reduce bureaucracy and enable faster decision-making in local markets.

While Adidas acknowledges it may not become the top brand in the U.S., Gulden believes the company can significantly strengthen its position in the American market through this new strategy.