URGENT UPDATE: Bank of America has just announced a major double-downgrade of Adidas, slapping a “sell” rating on the stock, signaling troubling trends for the iconic brand. The bank’s analysts believe the 20-year shift towards casual attire is coming to an abrupt end, and Adidas will face significant challenges moving forward.
This shocking shift in rating comes as a stark contrast to the overall bullish sentiment surrounding Adidas from other Wall Street analysts. Bank of America asserts that the casualization trend, which has seen sneakers grow from 20% to an astounding 50% of the footwear market, has peaked. As society has embraced a more relaxed dress code—evident in everything from airport attire to live television broadcasts—the firm warns that the momentum is now fading.
The implications are dire for Adidas. Analysts predict that the company will see organic sales growth plummet into the single digits, diminishing the brand’s appeal and market position. In a bold move, Bank of America has downgraded Adidas from a “buy” to “underperform,” marking one of the most bearish stances on the stock in recent times. Following this announcement, shares of Adidas fell by as much as 7% on Tuesday.
While Adidas struggles, competitors like Asics and On are poised to capitalize on the shifting market dynamics. The rise of athleisure brands such as Vuori and Alo, which sell sweatpants at prices comparable to dress slacks, further intensifies the competition. Nike, another major player, is also experiencing a resurgence under CEO Elliott Hill, recently reporting robust growth in North America—a crucial indicator of its future prospects.
Despite the looming World Cup, where Adidas ambassador and soccer superstar Lionel Messi is expected to generate substantial sales interest, Bank of America cautions that any temporary boost will not offset the company’s fundamental issues. Once the excitement of the tournament fades, Adidas will be left grappling with the same challenges that have plagued it throughout 2025.
As consumer preferences evolve away from casual wear, Adidas’ struggles could signify a broader shift in the industry. Bank of America’s findings highlight the potential end of the sneakers-with-suits trend, leaving many to wonder how this will impact fashion norms moving forward.
With analysts now divided on Adidas’ future, all eyes will be on how the company navigates this pivotal moment. The trajectory of Adidas could very well shape the landscape of the sportswear market in the coming months. Stay tuned for further updates as this situation develops.
