Nike on back foot as shoppers flock to Adidas for Sambas

WHEN Rishi Sunak was spotted wearing a pair of Adidas Samba, the backlash from fashionistas was so severe he was forced to say sorry.

“I issue a fulsome apology to the Samba community,” the Prime Minister told LBC. “But, in my defence, I would say I have been wearing Adidas trainers – including Sambas and others – in fact, for many, many years.” He was ahead of the curve: the vogue for “terrace” style trainers is now so dominant that even the City is taking notice.

“The fashion pendulum in sporting goods footwear has swung in Adidas’ favour over the last year, with fashion trends having notably shifted from chunkier basketball shoes (that favoured Nike) to terrace shoes, favouring Adidas’ Samba, Gazelle and Spezial product categories,” Morgan Stanley analysts Edouard Aubin and Grace Smalley said in a note sent to investors.

The analysts added that there was a “lack of recent product innovation” from its biggest rival Nike, which could also benefit Adidas.

The bankers urged investors to buy Adidas stock, helping its share price close up 4.2pc in Frankfurt.

Morgan Stanley’s verdict suggests the German sportswear giant may have turned a corner after struggling through a difficult and costly break-up with rapper Kanye West.

Adidas ended a lucrative deal with the rapper in late 2022 over a string of anti-semitic comments made by Mr West. The fallout left Adidas scrambling to clear a mountain of stock and prompted its first annual loss in 30 years in 2023. However, the company was more upbeat about its prospects for 2024 as it flagged rising demand for its Samba and Gazelle shoes.

Mr Aubin and Ms Smalley said: “We expected it to be a long and expensive journey to meaningfully turn around Adidas’ prospects amid an intensely competitive environment. However, following the completion of our most recent round of our quarterly channel checks, we stand corrected.”

Samba and other “terrace” style shoes – named because they were favoured by football fans in the 1970s and 1980s who stood on the terraces to watch games – have been rising in popularity after being worn by celebrities including Bella Hadid, Harry Styles and the rapper A$AP Rocky.

The style is most associated with Adidas – to the detriment of rival Nike.

Nike’s revenues were flat over the three months to Feb 29, at $12.4bn (£9.9bn). Its share price has fallen by 14pc so far this year and by 26pc over the past 12 months.