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Fashion's Casual Era Ends, Adidas Faces Decline
7 Jan
Summary
- Bank of America declares the 20-year trend of fashion casualization has ended.
- Adidas stock rating downgraded by BofA due to shrinking sales growth.
- Nike's turnaround may accelerate Adidas's decline, analysts predict.
The extensive 20-year period of fashion casualization appears to have reached its zenith, according to Bank of America. This societal shift, marked by the rise of athleisure and the widespread acceptance of casual wear, has seen sneakers dominate the footwear market. The firm's research suggests this trend has now peaked.
Consequently, Adidas is expected to face a significant slowdown, with organic sales growth predicted to shrink into single digits as its brand appeal diminishes. Bank of America has drastically downgraded the company's stock rating from 'buy' to 'underperform,' presenting the most bearish price target on Wall Street. This assessment comes despite a challenging year for Adidas, with shares having fallen 29% in 2025.
While competitors like Asics and On continue to pose threats, BofA highlights Nike's ongoing turnaround as a potential catalyst for Adidas's decline, as their revenue growth historically moves inversely. Even anticipated boosts from events like the World Cup are not expected to offset Adidas's underlying issues through the end of the year.
