The Sneaker Oligopoly
To me, any serious analysis of this sector starts with the shoes. Nike remains the undisputed heavyweight champion. It is not just an apparel manufacturer. It is a cultural institution.
The company has spent recent years quietly shifting to direct-to-consumer sales, cutting out the middleman. Bringing the checkout process home could capture better margins, though execution risks might still derail the best-laid plans.
Adidas offers a distinct, European counter-narrative. The German giant spent the post-pandemic years untangling a deeply publicised partnership crisis. Revenues slipped. Sentiment plummeted.
Then, they remembered what they were actually good at.
They leaned back into their footballing heritage and stabilised the ship. If you are exploring a thematic Sports allocation, Adidas provides genuine global reach and a classic recovery arc.