For a brand that has adopted “Own the Game” as one of its latest global marketing mantras, 2021 should be very good to Adidas. CEO Kasper Rorsted says the Three Stripes is “seeing a slow and steady recovery” from COVID-19 impacts. Soccer is returning to global pitches, which should result in higher boot and licensed kit sales and the delayed Tokyo Games open during the third week of July.

As it released Q1 results late last week, which showed 27 percent currency neutral sales growth and a 210 basis point improvement in gross margin on healthier inventory levels, Adidas forecast “high teens” topline sales growth in FY21.  During the year’s first period, footwear sales rose 31 percent with Training, Running, Outdoor (+60% globally) and Lifestyle each posting double-digit topline improvement. The company introduced its Ultraboost 21 globally in Q1 through its Direct-To-Consumer channels, and it has high expectations for its recently introduced 4D FWD, 3-D printed running shoe that will be scaled during the Tokyo Games and expanded into additional color ways later this year.

In North America specifically, where Q1 sales rose 8 percent with port congestions hindering possible double-digit growth, Adidas intends to accelerate its telling of “brand stories” and a revitalization of its stores.

While estimating DTC will account for 50 percent of its topline by 2025, Adidas says traditional retail remains vitally important to the brand with Rorsted telling analysts that currently there is “pent-up demand for product and experiences” at retail. And while retail traffic remains largely below normal levels in most global markets, Adidas is benefitting from higher conversion rates. By Friday (May 14), Adidas projects 94 percent of its global doors will be open for business.

Among potential drags on Adi’s ongoing business is the supply chain, which could eventually result in higher freight costs later this year. For now, the company has mitigated most issues, including port congestion in the U.S., with two-week delays on product deliveries. Meanwhile, total Q2 sales for Adidas are projected to rise approximately 50 percent. The company intends to host an Innovation Day at its Germany headquarters in Q4 for investors and analysts where it will unveil its 2022 product ranges.