From the Sector

• The new high-performance away kit design blends bold geometric prints with shades of halo pink and soft, pastel glow blue, pushing the boundaries of on-pitch sport style.
• The limited-edition range includes a gender-neutral game-day match shirt as well as comfort-first off-pitch pieces for pre- and post-match travel.

adidas and Arsenal have launched the next chapter of their collaboration with Stella McCartney, by revealing the first away kit and travel range for Arsenal Women.

The limited-edition range is designed to support Arsenal Women both on and off the pitch and includes a range of structured silhouettes including a jersey, shorts and stylish travel wear pieces such as a full zip jacket with neon accents, track-style pants, and an oversized tee. As the hero piece of the collection, the striking away shirt takes centre stage thanks to the fusion of geometric patterns with color-blocking accents of halo pink and glow blue. The shirt also features AEROREADY technology, which uses sweat-wicking and absorbent materials to keep players feeling dry.

Key pieces are crafted with at least 47% recycled polyester and 100% organic cotton as part of adidas' ambition to help end plastic waste.

adidas launches its new LFSTLR jersey collection, featuring the season 23/24 third jerseys of some its leading clubs, re-imagined as fashion-focused, lifestyle streetwear.

LFSTLR blurs the lines between football performance and streetwear culture, re-defining what it means to represent your club away from the terraces. The collection includes adaptations of the third jerseys of Arsenal, FC Bayern Munich, Juventus, Manchester United and Real Madrid, retaining the overall design blueprint of the authentic on-pitch and fan versions but with a focus on wearability and comfort over pure performance for the field of play.

Each jersey is made with an elevated base material, including heavier superior fabrics for additional comfort as well as featuring a more premium trim execution and detailing to truly ramp up the style factor. The application of a tonal adidas badge gives each jersey a clean, crisp look that gives the club crests additional prominence. Between 70-100% of the materials used in each jersey are from recycled or renewable sources.

adidas worked with each club to appoint a Creative Lead, tapping into the worlds of fashion and music, and ensuring the unique flair of each team came through with bespoke individuality:

• Arsenal linked up with Grammy-award winning rapper, Pusha T
• FC Bayern collaborated with Achraf, one of the hottest names in the German fashion and music industry
• Juventus called upon Italian style with fashion photographer Giampaolo Sgura
• Manchester United teamed up with Nigerian Afropop singer-songwriter, Adekunle Gold & Manchester’s The KTNA
• Real Madrid worked with renowned Mexican rapper, Alemán 

As part of the 12-piece collection, adidas introduces the SST Jacket – for men and women – as well as the Avacourt in a refreshed look. Both pieces share a bold blue hue – synonymous with the outfit that Billie Jean King wore in the Battle of the Sexes match – which is applied throughout the collection as a consistent design story.

The SST Jacket is inspired by the classic adidas tennis tracksuits from the era when Billie Jean King was at the height of her career, changing tennis on and off the court for years to come.

The Avacourt, having originally launched in 2022, is created and engineered to best support women when playing tennis – featuring a women’s specific last, increased torsion, softer materials and a midfoot support saddle. Updates for the 2023 season bridge today’s silhouette with the one worn by Billie Jean King 50 years ago – which was adidas’ first ever signature tennis shoe for women – via its color story, as well as key material updates. The suede leather tongue has a retro feel and soft premium touch, with the toe guard made from a synthetic suede finishing. Adding to the comfort, the heel collar is lined with terry cloth – a fabric synonymous with the era.

Other key pieces in the collection include the Tennis Modular Leotard AEROREADY Pro with detachable skirt, the Tennis Transformative AEROREADY Dress Pro that evolves into two different styles, and the Tennis Reversible AEROREADY Match Skirt Pro with Tennis HEAT.RDY Short Tight Pro layered underneath. For men, key pieces include the Tennis HEAT.RDY Freelift Polo Shirt Pro, the Tennis Reversible AEROREADY Freelift T-Shirt Pro and the Tennis AEROREADY 2 IN 1 Short Pro.

adidas announced a further release of YEEZY inventory with a range of existing products being available in phases throughout the month of August across the world. As previously communicated, adidas will donate a significant amount to selected organizations working to combat discrimination and hate, including racism and antisemitism.

As with the release in May 2023, the second release will feature products which were initiated in 2022. The range available will include some of the most popular existing designs including the YEEZY BOOST 350 V2, 500 and 700 as well as the YEEZY SLIDE and FOAM RNR.

adidas will continue the support of partners combatting discrimination and hate with donations to existing and new partners. The company will continue to support the work of the Anti-Defamation League (ADL) and the Philonise & Keeta Floyd Institute for Social Change. In addition, adidas is proud to partner with Robert Kraft’s Foundation to Combat Antisemitism (FCAS) to fight all forms of hate.

To create further impact adidas will show support for the Foundation to Combat Antisemitism by including blue square pins with selected products sold directly by adidas in North America. These blue square pins were established by FCAS through their #StandUpToJewishHate campaign launched earlier this year, as the universal symbol for standing in solidarity and unity in the fight against antisemitism and all hate.

Since terminating the YEEZY partnership in October, adidas has been exploring multiple scenarios for the potential use of the existing YEEZY inventory. The process involved seeking feedback and listening to a diverse group of employees, organizations, communities, and consumers for how to responsibly manage the existing product.

Fashion for Good launches new pilot with brand partners adidas, Inditex, Target and Zalando, and footwear recycling innovator FastFeetGrinded to test and validate the innovative footwear recycling process to support the uptake of recycled content in footwear, driving the change towards a more circular footwear industry.

Globally, 24 billion shoes are added to the market each year*, and a staggering 90% of shoes are either landfilled or incinerated*. To tackle this challenge, Fashion for Good has launched a new pilot with partners adidas, Inditex, Target and Zalando, in collaboration with innovator FastFeetGrinded, aiming to test and validate the footwear recycling process and support the uptake of recycled materials in footwear. FastFeetGrinded possesses the unique capability to deconstruct any type of pre- and post-consumer shoe, breaking it down into its macro-components. These macro-components are then subsequently grinded down into smaller high purity granulates which FastFeetGrinded may use to create material streams for repurposed use.

Through this collaborative pilot, the partners will divert pre- and post-consumer footwear to FastFeetGrinded, who will transform them into various new material granulates. The next step involves FastFeetGrinded’s network of supply chain partners, who will produce output products, such as outsoles, midsoles, and flip flops. The brands will closely evaluate the products’ quality and purity, aiming to showcase the potential of FastFeetGrinded's footwear recycling technology and pave the way for scalable solutions.

*World Footwear Yearbook (2020). Footwear production with a new record of 24.3 billion pairs.
*Vivobarefoot. 22 billion pairs of shoes are dumped into landfill each year. It’s time for change.
*WRAP (2019) Valuing our Clothes.
*Material Innovation Initiative (2021). 2021 State of the Industry Report: Next-Gen Materials.

adidas unveils its new campaign to celebrate the FIFA Women’s World Cup Australia & New Zealand 2023™. The campaign is dedicated to next gen icons Alessia Russo, Lena Oberdorf and Mary Fowler and looks to drive more global attention for the game and inspire other young women and girls to follow in their footsteps.

Marking adidas’ most impactful Women’s World Cup campaign to date, the brand unites its global family of football legends and advocates of the women’s game. Headlined by a series of fast-paced films, the campaign welcomes a star-studded line up of David Beckham, Leon Goretzka and Ian Wright, actor and football fan, Jenna Ortega, as well as Argentina’s World Cup hero, Lionel Messi. They come together to celebrate the skills that Russo, Oberdorf and Fowler are renowned for, from vision and interception to power, creativity and accuracy.

The films are part of a new creative proposition from adidas for the upcoming tournament. ‘Play Until They Can’t Look Away’ aims to platform and showcase some of the world’s greatest football players on the biggest stage – whose skills and passion for the game demand global attention and support.

Set against the soundtrack of SL2’s iconic song, On a Ragga Tip, fans see World Cup winner, Lionel Messi, alongside Mary Fowler, guiding both viewers and Jenna Ortega across the world to Fowler’s home country of Australia , with preparations for the biggest women's sporting moment underway.

Meanwhile, David Beckham and Ian Wright, alongside his granddaughter, Women’s Arsenal FC player, Raphaella Wright-Phillips, are unable to look away in a supermarket as Russo spectacularly weaves her way through the narrow aisles, in her own creative fashion. Finally, Goretzka is expertly interrupted while bowling as Oberdorf whizzes around an arcade, powerfully intercepting balls in each scene to achieve a high score of her own.

Paying respect to those who have gone before, the films are also filled with subtle references to memorable moments that football super fans will revel in, including shirt numbers, iconic tournament balls, plus much more.

This season, adidas Originals and the progressive Ukrainian label KSENIASCHNAIDER have come together to present a collaborative collection featuring a host of unconventional garments, footwear, and accessories.

Founded in 2011 by Ksenia and Anton Schnaider, KSENIASCHNAIDER is a Kyiv-based independent fashion house centered on creating boundary pushing ready-to-wear, denim, and upcycled apparel and accessories. Drawing on Ksenia’s design language and Anton’s engineering logic, the partners’ eponymous label continues to challenge established conventions to boldly project a new vision of the future.

The collection is anchored by a host of garments which blend the Ukrainian house’s signature aesthetic with adidas’ instantly recognizable brand codes. First, an array of denim pieces – including jeans, jackets, and shirt dresses – are elevated with frayed edges, voluminous cuts, and idiosyncratic details. Second, fresh takes on a timeless adidas classic stand out as adiColor tracksuits, corsets, and dresses are reworked in a patchwork finish.

The adidas Originals x KSENIASCHNAIDER collection launches on July 1st.

adidas and Bogey Boys are introducing the adidas x Bogey Boys collection featuring crisp designs and high-quality performance materials that combine vintage styles from golf and tennis with a modern feel, all for easy on- and off-course wear. The limited-edition capsule featuring apparel and footwear for men and women will be available at select locations beginning Wednesday, June 14.

The adidas x Bogey Boys capsule introduces classic, clean, and sporty designs that give golfers the chance to express their style.  In refined white, altered blue and collegiate green colorways, pieces from the collection include:

• Two four-button placket polos with a higher collar stand
• A striped silhouette as well as a solid pique option with piping at cuffs and chest pocket
• Terry cloth track suit (jacket and pants) with white 3-Stripes detailing and adidas x Bogey Boys branding
• V-neck sweater vest in collegiate green with checkered white and green contrasting across the shoulders and small contrast lines running through rib hem and armholes
• Straight-leg trouser made with adidas’ WARPKNIT material featuring pintuck detail down front and back legs along with piping around pockets for a crisp finish
• Terry cloth romper with zip-front pockets, elastic waistband with pin buckle, back-right welt pocket and contrast white binding at armhole and leg opening
• High-waisted skirt that features a side-zip opening, front and back seams with kick pleats, triangle pocket inserts with piping detail, and zipper pocket back-center and adidas’ WARPKNIT material
• Playful graphic tee that includes a 'Welcome to the Clubhouse' message on the back featuring characters dressed in pieces of the collection sketched by Macklemore and the adidas team.

There will be a handful of accessories to complement the range including a five-panel rope hat, leather golf glove, and leather travel bag featuring croc texture with metal feet and hardware.

adidas has announced a new milestone in its journey towards replacing virgin polyester with recycled polyester . 96% of all polyester used in adidas products is now recycled polyester. The achievement of the ambition that adidas first set in 2017 – to replace all virgin polyester with recycled wherever possible by the end of 2024 – is on track to be achieved earlier than expected.

Since the first adidas high-performance shoe was made with recycled materials in 2015, the brand has been working towards reducing its dependency on virgin polyester. Last year it announced that in 2021, more than 90% of the polyester used in adidas products was recycled, which – if it had been virgin polyester - would have accounted for 390 thousand metric tons of CO₂e – the equivalent to the greenhouse gas emissions generated to provide power to 50 thousand homes in the US^[1].

According to Textile Exchange^[2], global recycled polyester fiber production volume increased in 2021, but still accounts for just 14.8% of all global polyester production.

Sport is about meeting challenges head-on and finding ways to overcome those – material innovation is no different. For the team at adidas, the road to 96% has been long and full of challenges. The confirmation of its polyester commitment in 2017 was a crucial step in helping to initiate a transformation across adidas and its entire supply chain. This transformation has been made possible through creating technical solutions and imagining new possibilities that previously didn’t exist.

To accompany the announcement, adidas has created a short film about its new ‘PB’, featuring star athlete Jazmin Sawyers. The film highlights the sports brand’s pride in making progress, and its determination to push further.

As the brand looks ahead to 2024 and beyond, it will continue to expand its focus beyond recycled polyester. It will be doing this through three main areas of focus: changing materials by testing and scaling new raw materials, rethinking entire processes to design products that have a circular end-of-life solution, and reducing its carbon footprint.

^[1] adidas Footprint Analytics team
^[2] Textile Exchange Preferred Fiber & Materials Market Report, October 2021, https://textileexchange.org/app/uploads/2022/10/Textile-Exchange_PFMR_2022.pdf

Major developments FY 2022

• Currency-neutral revenues up 1% reflecting growth in all markets except Greater China
• Double-digit increases in North America and Latin America, EMEA up high single digits
• Gross margin declines to 47.3% due to strong increase in supply chain costs and discounting  
• Operating profit at € 669 million, including one-off costs of € 312 million
• Operating margin decreases to 3.0%  
• Net income (continuing operations) of € 254 million includes € 350 million one-off costs
• Executive and Supervisory Boards propose dividend of € 0.70 per share

Major developments Q4 2022

• Currency-neutral revenues decline 1% impacted by termination of Yeezy partnership
• Gross margin at 39.1% reflecting increased supply chain costs and higher discounting
• Operating loss of € 724 million
• Net loss from continuing operations of € 482 million

Outlook for 2023
Underlying operating profit expected to be around break-even level
In 2023, adidas expects currency-neutral revenues to decline at a high-single-digit rate as macroeconomic challenges and geopolitical tensions persist. Elevated recession risks in Europe and North America as well as uncertainty around the recovery in Greater China continue to exist. The company’s revenue development will also be impacted by the initiatives to significantly reduce high inventory levels. In addition, while the company continues to review future options for the utilization of its Yeezy inventory, the guidance already reflects the revenue loss of around € 1.2 billion from potentially not selling the existing stock. Accounting for the corresponding negative operating profit impact of around € 500 million, the company’s underlying operating profit is projected to be around the break-even level in 2023.

Reported operating loss of € 700 million projected
Should the company irrevocably decide not to repurpose any of the existing Yeezy product going forward, this would result in the potential write-off of the existing Yeezy inventory and would lower the company’s operating profit by an additional € 500 million this year. In addition, adidas expects one-off costs of up to € 200 million in 2023. These costs are part of a strategic review the company is currently conducting aimed at reigniting profitable growth as of 2024. If all these effects were to materialize, the company expects to report an operating loss of € 700 million in 2023.