Adidas could face pressure as a 20-year casualization trend ends

Bank of America says a 20-year 'casualization' trend has peaked and has downgraded Adidas, forecasting slower organic sales growth.

Bank of America reported that a 20-year trend toward more casual dress has reached a turning point. The article says the firm downgraded Adidas to an "underperform" rating and expects the brand's organic sales growth to slow. Bank of America also cautioned that any World Cup–driven sales lift would likely be temporary. Key points: - Bank of America reported the long run of "casualization" has peaked, noting sneakers grew from about 20% to roughly 50% of the footwear market over the period. - The article says BofA twice reduced its rating on Adidas to "underperform" and expects single-digit organic sales growth for the brand. - Adidas shares fell as much as 7% on the downgrade, and the article notes the company declined about 29% during 2025. - The article cites ongoing competition from brands such as Asics, On, and Nike and states a sustained recovery for Nike could occur at Adidas' expense; it also reports BofA views any World Cup boost as likely short-lived. Summary: Bank of America expects Adidas' sales growth and share price to face pressure as the casualization trend ends. Undetermined at this time.