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Updated: Aug. 22, 2024 Table of Contents
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Adidas (styled as “adidas” since 1949) is a prominent German manufacturer of athletic shoes and apparel, identified by its three-stripe trademark. The company is also known for its high-profile endorsement deals, including NBA star Derrick Rose and Argentine-born football (soccer) star Lionel Messi, who signed a lifetime deal with Adidas in 2017. Adidas has faced both success and controversy with its Yeezy brand, a collaboration with rapper Kanye West.
As of 2023, the company’s primary revenue driver is footwear (55%), followed by sportswear and fashion-oriented apparel (38%). The remaining 7% of sales comes from bags, hats, and other accessories.
Adidas traces its roots to the aftermath of World War I. The Dassler family, led by founder Adolf (“Adi”) Dassler, ventured into the shoe manufacturing business in his mother’s house. The turning point for the brand came during the 1936 Berlin Olympics when American track-and-field star Jesse Owens donned shoes reportedly gifted by Adi Dassler, garnering international attention and setting the stage for Adidas’s global recognition.
The disruptions of World War II presented challenges for Adidas, as Adi and his brother Rudolf worked to rebuild the Dassler firm. By 1948, a personal rift between the brothers became irreparable, leading to a split in the business. Rudi’s company eventually became Puma, while Adi’s venture retained the name Adidas.
Adidas experienced steady growth in the 1950s as football (soccer) players adopted the company’s lightweight and cleat-equipped shoes. The company diversified its product line, introducing soccer balls in 1963 and expanding into apparel four years later. Its still-common slide sandals have been manufactured since 1963.
Learn about the company’s role in the rise of sneaker culture.
Adidas presented a new logo—the Trefoil—in time for the 1972 Olympics in Munich. Adidas, long dominant in athletic shoes, faced heightened competition in the 1970s, notably from emerging brands such as Nike. Despite an endorsement deal with the rap group Run-D.M.C. in 1986, market shares declined during the 1980s. Adi Dassler’s passing in 1978 began a period of ownership transitions. Adidas became a publicly traded company in 1989 and all Dassler family ownership ended.
Between 1990 and 1993, Adidas faced ownership challenges under Bernard Tapie, a scandal-tainted French executive. The company underwent another change in leadership with the arrival of Robert Louis-Dreyfus. In 1997, Adidas acquired the Salomon Group, diversifying into winter sports products and golf through the TaylorMade brand. The company rebranded as Adidas-Salomon AG in 2001.
Adidas acquired and sold several business units during the early 2000s:
In addition to sponsoring players of many sports and several sporting leagues, notable collaborations have strengthened the brand’s cultural relevance:
During the 2010s and 2020s, Adidas was criticized for charging unfair prices, running sweatshops, and a failure to address racism and discrimination in the workplace.
Adidas also worked with rapper Kanye West starting in 2013, finally breaking with him in 2022 after he made antisemitic and other offensive public comments. A New York Times examination found that the artist had been making such comments for years while working with Adidas.
A class-action lawsuit was filed in April 2023 in which shareholders stated that Adidas executives should have disclosed the risk of this toxic partnership. In an attempt to regain a good public opinion, a portion of proceeds of Kanye’s remaining shoe inventory (Yeezys) would support organizations that oppose antisemitism and racism.
The end of the Adidas-West tie-up—which had been lucrative for both the company and the rapper—left Adidas with hundreds of millions of dollars in unsold inventory. And, because the Yeezy brand was more of a fashion statement than an athletic shoe, the breakup left a hole in Adidas’ athleisure apparel lineup.
Adidas has weathered many storms in its 75-year history—World War II, a family rift that tore the company in two, and a falloff in market share throughout the late 20th century—and has each time bounced back. Its commitment to innovation and strategic partnerships has solidified its position as a key player in the athletic footwear and apparel industry.
