Old feels new as Adidas makes American comeback

A few years ago, Adidas was fading away in the United States like a tired 1970s rock band, its once-iconic three stripes producing more nostalgia than sales.

But the German sports brand found a more contemporary beat by partnering with rapper Kanye West and other pop culture icons and aggressively engaging its target audience of 14- to 24-year-olds where they live — on social media.

Suddenly, kids began buying the shoes their parents wore, now infused with retro chic. They bought them in such quantities that Adidas sneaked up behind Under Armour and recaptured the No. 2 position in combined U.S. apparel and footwear sales, NPD Group said.

"It's such a thing," said Keli Reyes, a University of Maryland sophomore who wore white Adidas Superstar sneakers and a black Adidas ball cap.

Her friend, sophomore Remi Warner, also wore Superstars — a variation of the model that Mark King, Adidas' North American president, said he wore in 1972.

It's not just a retro feel that enabled 68-year-old Adidas — which is much older than rival athletic brands Nike and Under Armour — to mount a U.S. comeback. The company said it is more rapidly changing designs, colors and fabrics than before, catering to U.S. consumers accustomed to frequently seeing fresh looks.

"Adidas had a history of not making products that American kids wanted to buy," said industry analyst Matt Powell with NPD Group. "They hit bottom in 2014. They really changed their approach to the U.S. market."

In 2014, Adidas collaborated with West on a sneakers and clothing line. Singer Pharrell Williams also partnered with the brand. The next year, West unveiled his early Adidas designs at a New York Fashion Week event with pop celebrities Jay Z and Beyoncé, Diddy and Rihanna in attendance.

In the next few years, actress Emma Stone, pop star Taylor Swift and singer-actor Justin Timberlake were all photographed wearing Adidas.

All of this was leveraged on social media, creating buzz, King said. Then the company used the same social media channels to highlight new styles.

"We've been really active in social media, which is where this 14-to-24-year-old lives their life," King said. "I think it's that constant availability that's really driving the connection. Brands are finding that's really the way to talk to consumers."

The data showed striking gains by Adidas in footwear, Powell said. While the overall American footwear category grew in the low single digits in 2016, Adidas' growth was more than 80 percent, he said.