Thus far, adidas has faced a number of challenges in 2015, but it looks like the brand's emphasis on improving its U.S. market share is finally starting to pay off.
The Wall Street Journal reports that the brand's first-quarter net profit improved by 8.2 percent, with profits through March totaling $246 million. At this point last year, adidas' net profit was just $228 million, and the increase has been attributed to the Three Stripes' focus on performance in North America. Sales in North America increased by 7 percent, which is good news for embattled CEO Herbert Hainer. "I am proud of how fast we rebounded after a challenging 2014. Our business is in great shape," Hainer said.
Somewhat surprisingly, one of the brand's biggest sales boosts didn't actually come from the Three Stripes, but from the Reebok brand. After acquiring Reebok in 2006, it took awhile for the move to turn a profit, but now adidas is reaping the benefits. Reebok's CrossFit and fitness products have seen an explosion in popularity, which is another feather in the cap for Hainer, who previously said that selling the brand would be "stupid."
It's been a long, arduous road, but it sounds like adidas is finally positioning itself to be a major contender again.
[via Wall Street Journal]
