UPDATE: Adidas is facing a critical moment as Bank of America has issued a rare double-downgrade, now rating the stock as a “sell.” This urgent announcement comes amid a significant shift in fashion trends, with the once-dominant 20-year “casualization” of attire reportedly reaching its peak.
Bank of America analysts predict that this downturn spells serious trouble for Adidas. The firm notes that the brand will likely see organic sales growth plummet into the single digits as it loses relevance in a rapidly changing market. Shares of Adidas fell as much as 7% on Tuesday following this stark forecast.
The casual fashion movement saw sneakers rise from 20% to an astounding 50% of the footwear market over the past two decades. However, Bank of America now believes that consumers are shifting their preferences away from casual wear back towards more traditional sporting goods.
While most Wall Street analysts remain bullish on Adidas, Bank of America’s contrarian stance is particularly alarming, especially after Adidas’ shares dropped 29% in 2025. The firm’s new price target is the most bearish on the market, prompting urgent discussions about the brand’s future.
As competitors like Nike and Asics continue to gain ground, the landscape for Adidas looks increasingly competitive. Nike, which has seen a resurgence thanks to strong North American growth, could exploit Adidas’ struggles to its advantage, as historically, the two brands have experienced inverse revenue trends.
Adding to the pressure, the upcoming 2026 World Cup—featuring Adidas ambassador Lionel Messi—might not provide the anticipated boost. Bank of America warns that once the excitement of the tournament fades, Adidas will still have to contend with the same challenges it faces today.
Adidas is at a crucial crossroads, and as the industry watches closely, the end of the sneakers-with-suits trend may be a silver lining for some. With the casualization era potentially behind us, the future of this iconic brand hangs in the balance.
Stay tuned for further developments as this situation unfolds.
