After cutting ties with two U.S. pop stars, Adidas is looking for new inroads to the American audience.
The company is leaning into its U.S. operations, particularly basketball and soccer, as it seeks to grow its presence and identity in the U.S.
“We want to double down on all of the things that are U.S.-centric, particularly around sport,” Adidas North America president Rupert Campbell told the Wall Street Journal.
Adidas spent hundreds of millions on a new facility in Los Angeles, which will be the center of its basketball product team, and on upgrades to its North American headquarters in Portland.
The company is also seeking a boost from its relationship with MLS, with the World Cup coming to North America in 2026. Sales on soccer products are up 50% from last year, following the launch of new MLS jerseys in February.
Last year, Adidas cut ties with Ye, formerly known as Kanye West, in a public breakup that is now the subject of a shareholder class action lawsuit. In March, the company parted ways with Beyonce by mutual agreement over creative differences around her clothing line after a four-year partnership.
This is one of the first major moves by Adidas CEO Bjørn Gulden, who assumed the role in November.
The company is expecting a $548.7 million profit impact on its fiscal 2023 from unsold inventory due to ending ties with Ye, plus $219.5 million in one-off costs.
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