Adidas Posts Big Rise in Sales and Profits

In an attempt to gain market share in the U.S., where Nike reigns supreme, Adidas has announced plans to increase spending on marketing again after high-profile sponsorship deals and celebrity partnerships have helped it to attract U.S. consumers. According to a statement from the German sportswear company, it will seek to build upon its existing momentum by lifting promotional spending further in the period leading up to Christmas. Moreover, it will spend 13 to 14 percent of sales on marketing this year, that’s more than most rivals, which reportedly only spend about 10 to 11 percent.

After slipping last year into third place in the U.S. market behind Nike and the fast-growing Under Armour, Adidas has made a big push in North America – tapping rapper Kanye West, who got the boot from Nike, to come on board and agreeing to partnership and sponsorship deals with top NHL and NFL players. Adidas will seek to capitalize on those deals as well as launching a major basketball campaign, CEO Herbert Hainer said in a conference call with journalists. Its campaign for the 2016 European soccer championship will start next week when it launches a new jersey for the German national team.

As for third-quarter results, the brand announced that sales were up: $5.17 billion. That is an increase of 18 percent, with strong performances in North America and China responsible for much of the improvement. According to our pals over at Fortune, "the German company seems to be waking up from its long U.S. nightmare." Will this be enough for it to reclaim its number 2 spot in the U.S., however, is the real question here?