22 August 2023
The drop in consumption in the USA is the “biggest problem” of sports shoe brands. This is how Bjorn Gulden, CEO of Adidas, defined it in relation to the drop in sales in that country. Other big brands such as Skechers, Deckers, Puma and Columbia also expressed their concern about the situation in the US market, reports CueroAmérica.
In the first four months of the year, the sports shoe market in the United States fell 16%. If the first semester is measured, the drop reaches 18%. Adidas CEO Bjorn Gulden described the situation as the company’s “biggest problem.” “Currently, the United States is our most difficult market to sell to, because it is fully supplied,” Gulden said. “It is a very difficult market in which many are fighting it,” he said, referring to the drop in the purchasing power of the population.
Merchants have excess inventory and are placing very conservative orders. Added to this is an economic situation marked by inflation, rising interest rates and fear of a possible recession. In this scenario, the brand has just lost the business it had set up in collaboration with Yeezy, a fact that will generate a loss of €400 million for Adidas.
But the brand of German origin is not the only one that regrets the situation of the North American market. Matt Puckett, CFO of VF Corporation stated that “all of our brands are having some impact from what is happening in the wholesale channel, particularly in the US, as wholesalers are adjusting their inventories.” The company especially felt the impact on its Vans brand, which had a 40% drop in the first quarter.
Columbia is another of the brands that is seeing its sales drop in the USA. Tim Boyle, the company’s president, noted that “in the US, direct selling trends have softened, reflecting cautious consumer behavior.” The executive added that “high inventory levels, particularly in footwear, have contributed to increased sales and promotional activity.”
Skechers, for its part, suffered a drop in sales of 5.9% and Puma 17%, both during the first half of the year. “We saw that the general market was trading fewer units in the first half of the year. We also continue to see consumer sentiment remain muted,” said Arne Freundt. Cougar CEO.