Adidas, the global home of the world’s best-selling sneakers, announced on Tuesday that it expects to generate about $1 billion in quarterly revenue for the company this year, the first time the world-beating sneaker brand has reported that it has surpassed a $1 trillion market cap.
The announcement comes as the brand’s profits and revenue have skyrocketed in recent years, as it has expanded its range of high-fashion footwear in addition to the classic line of casual wear.
Adidas has grown from a tiny, tiny company to a market leader in footwear and apparel, thanks to its partnership with the Nike Group, the world leader in athletic footwear.
But the brand has also been hit hard by the economic downturn.
Adidas stock fell by more than 15% on Tuesday as it announced its quarterly earnings.
The company said it expects revenue in the fourth quarter to be about $5.4 billion, up slightly from $5 billion in the third quarter and $4.5 billion for the year.
Adidas said that in 2019, its global market share will be around 55% compared with 45% for Nike and 29% for the entire retail industry.
But the growth in Adidas’ footwear business has been hampered by a drop in footwear sales in Europe and Asia, and the recent rise in obesity.