German clothing and shoe company Adidas AG stated on Tuesday its forward-looking plans for the company’s US sales target by 2020. Adidas has mentioned that despite recently struggling against its competitors, it has once again become optimistic in reaching stronger sales growth in 2020 by at least 47%.
“For 10 to 15 years we did not make sustainable progress in the US. We had good years, we had bad years, and we had inconsistent years. We were unclear where we wanted to take the company,” Adidas CEO Kasper Rorsted stated.
In line with its target to improve sales for the next years, Adidas says that more focus on its sports department will be designated. With a rising demand for sneakers, Adidas predicts on stronger growth in the next three years, with its design retro Superstar back by popular demand.
According to Rorsted, the North American market is the largest market Adidas has, with targeted sales of over €5 billion by 2020, which was an increase of 47% from its initial forecast and a 24% climb to €3.4 billion in 2016.
Adidas decided to double their efforts in improving sales in North American region due to its lagging growth in recent years since 2014. However, Adidas was able to recover every now and then with recurring trend demands for its products, mostly with the recent trend shift from typical sneakers to white sneakers and denim.
Adidas Group North America President Mark King explained that the slowly growing trend and improving sales does not attribute alone to its original strong selling designs Stan Smiths and Superstars. “A year ago the momentum was primarily in Originals and today the momentum is across the board in performance product and Originals. The most exciting for us is the momentum in running and training apparel. Those are the two biggest categories, period.”
The company said that in order to improve sales in North America, they would have to focus on digital channels in order to cover younger consumers in the market, which, according to the company, was a crucial demographic for the sports clothing line.
Since Rorsted took office as CEO of Adidas last year, he has been able to improve digital retail sales, and has aim to improve revenues from €1 billion to €4 billion by 2020.
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