Dive Brief:
- Adidas is set to steal market share from Nike this year as its rival navigates a turnaround and a tariff-fueled economy. That’s according to a GlobalData analysis, which sees Adidas as one of the biggest winners in the global apparel market in 2025.
- Last year, Nike held 2.9% of the global apparel market, 1.1 percentage points higher than Adidas. In 2025, that’s expected to decline by 0.3 percentage points, at the same time that Adidas’ share grows by 0.1 percentage point.
- Other share gainers in apparel this year will be Shein, Uniqlo, Skechers and New Balance, according to GlobalData’s forecast. Puma, which just reported a Q2 sales decline and slashed its full-year forecast due to tariffs and soft sales trends, is expected to lose share, alongside H&M and Louis Vuitton.
Dive Insight:
The upheaval caused by the Trump administration’s ever-changing tariff policies is impacting all retailers in one way or another, though apparel is one of the hardest-hit sectors. Within that segment, retailers are raising prices and shifting production to cut down on costs, all while navigating a wary consumer.
“Brands that can quickly react to trends and offer good value for money will have the opportunity to gain share, whereas those that are unable to compete on price or style are forecast to lose out,” Tom Ljubojevic, apparel analyst at GlobalData, said in a statement.
Style is one of the reasons Adidas is forecast to win, with GlobalData citing the success of its Originals line and performance footwear in the current environment. Adidas just this week reported sales growth of 2% in Q2 and said it expects style preferences to continue to work in its favor. Nike, on the other hand, is struggling under the weight of lackluster innovation and the need to cut down on core franchises.
“Elsewhere within sportswear, New Balance and Skechers are also expected to gain share, bolstered by their versatility, alongside their high-profile athlete and brand partnerships,” Ljubojevic said.
Skechers has been on a tear recently, expanding into categories including soccer cleats and basketball shoes, alongside a robust brand ambassador strategy. Among others, Skechers has signed Harry Kane, Julius Randle, Terance Mann, OG Anunoby, Bernhard Langer and Kiki Iriafen. The retailer also recently signed a deal to sell itself to 3G Capital for $9.4 billion.
Although Shein will gain share again this year, that growth is slowing now “due to its established presence,” GlobalData said. Low prices and quick action on trends are helping the brand outshine others in apparel, though, including H&M and Zara.