Adidas Strikes Long-Term Partnership with Foot Locker
The Three Stripes, which last week announced a 13 percent constant currency increase in North American revenues to the equivalent of $1.25 billion that included a 20 percent jump in Direct-To-Consumer sales, has entered a three-year partnership with Foot Locker. A tighter bond between FL and Adidas isn’t surprising given the retailer’s ratcheting back of Nike products to 55 percent of its total merchandise mix by year-end.
The Adidas-Foot Locker relationship, covering all banners in North America, EMEA and Asia-Pacific, is targeting over $2 billion in retail sales by 2025. This year, Adidas is forecasting incremental revenues of approximately €100 million ($89.2 m) from the partnership as it provides the retailer with a dedicated team to deliver an elevated consumer experience in both stores and online. The duo will partner on product development as Adidas raises it product allocations and marketing spend tied to the global retailer.
For its part, Foot Locker will become the lead partner for Adidas basketball products, led by Fear of God founder and designer Jerry Lorenzo, with both lifestyle and performance styles. Additionally, the FL-Adidas partnership will include new, lifestyle sportswear products division and a focus on key Originals such the NMD, Superstar and Stan Smith.
North America was a bright spot for Adidas in the first quarter as the company suffered a 14 percent decline in first quarter net income to the equivalent of $541 million on a 1 percent increase in total revenues to approximately $5.95 billion. In North America, the brand’s lifestyle sales rose high-single digits and performance sales increased in the mid-teens.