German sportswear company Adidas says it is ahead of it competition Nike of the United States in the football boots business. Adidas was the market leader in the business but it slipped as Nike took over in the boots market in 2014. The slip forced the company to lift its marketing spending to be able to move back on top.
The Chief Executive Herbert Hainer told journalists in Paris that the company takes 36 percent of the market for soccer boots in the top five markets in Europe in the first quarter of 2016, setting them ahead of Nike.
Hainer said: “Our complete restart of the football footwear business 12 months ago is paying off. We have gained market share in key markets and our footwear offering is resonating well among our young target audience.”
Comments were expected from Nike but they declined to make any before its next earnings update which is scheduled for June 28. The German sportswear company is kitting out nine of the 24 teams playing at Euro 2016, including reigning champions Spain and Germany. Nike, on the other hand has six teams including hosts France and England, and smaller German brand Puma has five, including Italy.
For soccer shirt sales, Adidas’ market share was boosted after poaching Manchester United and Italian champions Juventus from Nike, although Nike recently hit back by taking English giant Chelsea from Adidas from 2017.
The rest of the earnings update revealed that the sales of footwear and balls account for about half of the company’s earnings while replica team shirts make up the rest. Adidas shares have been rising and have now hit all-time highs due to strong sales. Nike on the other hand have suffered a profit squeeze from the rising cost of sponsorships but he sponsorships have helped Adidas move sales forward.