Case Study · Adidas · Nike · Yeezy · 3D Innovation · 2015 – 2025

A Decade in Sportswear

I spotted Adidas as an undervalued stock when nobody was talking about it. I walked into their headquarters. I covered the rise of Yeezy, the decline of Nike's scarcity model, and the dawn of AI-designed and 3D-printed footwear all before they became the stories everyone was telling.

Adidas Nike Yeezy 3D Printing AI Manufacturing James Harden Mark King Nike Decline
Reporter's Note

How this story started

In 2015, Adidas was being ignored. Nike was the story. Under Armour was the hot brand. Adidas was the forgotten number three. I didn't think that was right.

I started writing about Adidas on Seeking Alpha and TheStreet making the case that the James Harden signing, the Yeezy partnership, and a renewed focus on North America were being undervalued by the market. The stock was around $60. It would eventually hit $340.

Two years later, I was sitting across from Mark King, President of Adidas North America, in a series of exclusive interviews I secured by showing up, asking, and earning the access. We talked about Harden, about Yeezy, about the intersection of fashion and performance, and about what it would take to hold the number two spot in North America against a weakening Nike.

Simultaneously, I was covering Nike's structural problems the Jordan brand oversupply, the scarcity model breakdown, the DTC strategy that would eventually unravel under CEO John Donahoe. The market didn't price that in until years later.

And in April 2017, I was in New York covering the launch of Adidas Futurecraft 4D the world's first mass-market 3D-printed shoe. I called it one of the most significant innovations in footwear history. I connected it to the same AI-in-manufacturing story I'd later cover in golf with Callaway's Epic Flash driver. The thread was always the same: technology changing how physical products are made.

Timeline
Date
Event
Nov 2015
Hershman · Seeking Alpha
Published · Seeking Alpha
"James Harden Deal Can Bring Adidas Back To Relevance"
Adidas has just signed James Harden to a 13-year, $200M contract. The market is skeptical. I'm not. I make the case that the NBA endorsement strategy focused on individuals over league deals is smarter, and that the stock is being overlooked. Adidas is around $60. Nobody is talking about it.
Read on Seeking Alpha →
Mar 2016
Hershman · TheStreet
Published · TheStreet
"Is James Harden's Massive $200 Million Contract With Adidas a Good Deal?"
Adidas stock is up over 40% since signing Harden. I revisit the thesis: the deal was right, the stock was undervalued, and Adidas has reclaimed the number two position behind Nike. The market is starting to catch on to what I was writing six months earlier.
Read on TheStreet →
Jul 2016
Hershman · Benzinga
Published · Benzinga
"Adidas Is Finally Figuring Out The North American Market"
The full thesis lands. Adidas is growing faster than the US market. Nike is stumbling. The Yeezy Boost is the hottest shoe on StockX. Harden is in the MVP running. I document the cultural and financial inflection point the moment Adidas becomes impossible to ignore.
Read on Benzinga →
Aug–Sept 2016
Nike · Market Event
Nike Stumbles
Nike Posts Worst Performance In 6 Years. Jordan Brand Loses The No. 2 Spot.
Nike reports its worst earnings in six years. The Jordan brand long the gold standard of sneaker scarcity has been oversupplied. Adidas overtakes Jordan as the No. 2 selling shoe brand in the US. I begin covering the structural problem: Nike abandoned the scarcity model that made Jordan iconic, and the market is starting to punish them for it.
Mar 2017
Hershman · Benzinga
🔴 Exclusive · Benzinga
"Exclusive: Adidas' Mark King Talks About The Company's Comeback, Turning The Corner In North America"
I land my first exclusive interview with Mark King, President of Adidas North America. We talk about Harden, about why they dropped the NBA deal in favor of individual endorsements, about the brand's turnaround strategy, and about why North America is finally moving. King had taken over after running TaylorMade a golf connection I'd later follow at Callaway.
"We wanted to really be relevant in the U.S., relevant to the U.S. consumer. So we started to look at things differently." Mark King, Adidas North America President
Read on Benzinga →
Apr 7, 2017
Hershman · Benzinga
Published · Benzinga
"FutureCraft 4D: Adidas Launches First Mass-Market 3D Shoe"
Adidas announces the Futurecraft 4D the world's first high-performance shoe with a midsole made using Digital Light Synthesis, in partnership with Silicon Valley's Carbon. I cover the launch and call it "one of the most notable innovations in the shoe industry." 5,000 pairs to start, scaling to 100,000 by 2018. The implications go far beyond footwear this is manufacturing being reinvented by technology.
"Ten people with 100 printers in 2,000 square feet can produce 12,000 shoes a month." Carbon CEO, quoted in my reporting
Read on Benzinga →
May 2017
Hershman · Benzinga
Published · Benzinga
"Mass Customization Is The Future Of Retail"
I zoom out from the Futurecraft 4D launch to make the bigger argument: this isn't just a shoe. 3D printing enables mass customization the ability to make a product fitted to an individual's body at scale. Traditional shoe sizes may become obsolete. The brands that adapt will win. The ones that don't will be left behind. This is years before "personalization" becomes a retail buzzword.
Read on Benzinga →
Jan 21, 2019
Hershman · Benzinga
🔴 Exclusive · Benzinga
"Golf Equipment Sales Finally On The Upswing — What's Behind The Comeback?"
I interview TaylorMade CEO David Abeles as the golf equipment industry begins its recovery. Abeles pushes back on years of doom-and-gloom narrative: the industry had reset, not collapsed. Tiger's return was accelerating it. The piece connects to the thread I'd been running since Nike's 2016 golf exit — and it's the same TaylorMade that Mark King once ran before moving to Adidas North America. The stories were always linked.
"A lot of the pessimism regarding golf was not fact-based. There is no doubt there were course and retail closures, but we have strong footing foundationally." David Abeles, TaylorMade CEO
Read on Benzinga →
Sept 2017
Hershman · Benzinga
Published · Benzinga
"With Acquisition Rumors Swirling and Nike Declining, Footwear Retailers Must Act Quickly"
Nike's Consumer Direct Offense its push to cut out retailers and go direct poses an existential threat to Foot Locker and Finish Line, who get 71% of their sales from Nike. I cover the structural risk clearly: these retailers are dangerously overexposed to one brand that is actively trying to cut them out. This is years before Foot Locker's stock collapses.
Read on Benzinga →
Nov 8, 2017
Hershman · Benzinga
🔴 Exclusive · Benzinga
"Exclusive: Adidas President Mark King Discusses Being At The Intersection Of Performance And Fashion"
My third exclusive with Mark King, this time ahead of Adidas earnings. The thesis I'd been tracking since 2015 is now industry gospel: Adidas wins because it merged performance and fashion while Nike was still treating them as separate categories. Adidas had grown 31% in North America in Q1. The stock had run dramatically. Three years of reporting, validated.
"At the intersection of performance and fashion is where we are today and that is why we are winning." Mark King
Read on Benzinga →
Jan 2018
Hershman · Benzinga
Published · Benzinga
"In Sports Retail, Expect A Challenging Year"
I document the structural shift in sports retail: the industry has moved from aspiration to a race to the bottom on price. Nike and Under Armour, built on performance products, have missed the fashion-to-casual shift. Jordan has oversupplied the market and damaged its own cachet. I call for a "challenging year" for the sector. The doldrums would last several more years.
Read on Benzinga →
Jan 2019
Hershman · Benzinga
Published · Benzinga
"The Adidas Yeezy Line Expansion Is Working…For Now"
Yeezy sales are up 500% in Q4 from expanded supply. But I flag the warning: Adidas may be falling into the same trap Nike did with Jordan oversupplying a brand built on scarcity and killing the cachet that made it valuable. The Jordan comparison is hiding in plain sight. This is a business model risk, not a cultural one.
"As we saw with Jordan, oversupply can hurt demand." Matt Powell, NPD Group, quoted in my reporting
Read on Benzinga →
Mar 2019
Hershman · Benzinga
🔴 Exclusive · Benzinga
"Exclusive: Callaway Golf CEO Talks Epic Flash Driver And How AI Will Change The Industry"
The 3D printing and AI-in-manufacturing thread connects to golf. Callaway's Epic Flash Driver is the first golf club ever designed by artificial intelligence. I interview CEO Chip Brewer about it the same thread I'd been pulling since the Futurecraft 4D launch in 2017. Technology is redesigning physical products across every sport. Two years before anyone calls it "AI."
Read on Benzinga →
Oct 2022
Market Event
Yeezy Terminated
Adidas Severs Ties With Kanye West Following Antisemitic Remarks
Adidas terminates the Yeezy partnership following Kanye West's public antisemitic statements. The partnership worth an estimated $1.5B annually collapses overnight. Adidas is left holding over $1B in unsold Yeezy inventory. The brand I spent years covering as a turnaround story now faces its most serious crisis.
Feb 2023
Hershman · Benzinga
Published · Benzinga
"Adidas CEO Says 2023 Will Be A Rebuilding Year, Projecting $1.3 Billion Loss On Yeezy Termination"
The financial fallout lands. Adidas projects a $1.3B loss from the Yeezy termination. The brand I covered from $60 to $340 is now in full rebuilding mode. I cover the earnings, the new CEO's plan, and what comes next for a company that built too much of its identity around a single volatile partner.
Feb 2025
Hershman · Benzinga
Published · Benzinga
"Nike-Kim Kardashian Partnership Just 'One of a Dozen' Fixes The Brand Needs"
Nike announces NikeSKIMS. Stock jumps 6%. I put it in context: this is one fix in a long list. Nike stock is down 26%+ over the prior year. CEO Donahoe has been ousted. The DTC strategy I flagged in 2017 has now officially failed. The scarcity model problems I covered in 2018 are now being addressed by a new CEO brought out of retirement. The decade of reporting comes full circle.
Read on Benzinga →
Published Work

Key Articles From This Arc

Seeking Alpha
November 2015

James Harden Deal Can Bring Adidas Back To Relevance

The original thesis. Adidas is undervalued. Harden is the catalyst. Nobody is writing this yet.

Read →
Benzinga · Exclusive
March 2017

Exclusive: Adidas' Mark King Talks About The Company's Comeback

First of three exclusive interviews with Adidas North America President Mark King. The turnaround story, Harden, and what's next.

Read →
Benzinga · Tech / Innovation
April 7, 2017

FutureCraft 4D: Adidas Launches First Mass-Market 3D Shoe

Breaking coverage of the Futurecraft 4D launch. Called it one of the most notable innovations in footwear history.

Read →
Benzinga · Exclusive
January 2019

Golf Equipment Sales Finally On The Upswing — TaylorMade CEO David Abeles

Exclusive with TaylorMade CEO David Abeles on golf's recovery, Tiger's business impact, and why the industry's pessimism was never fact-based.

Read →
Benzinga · Exclusive
November 2017

Adidas President Mark King: "At the Intersection of Performance and Fashion"

Third exclusive with Mark King. The thesis confirmed. The brand is winning because it merged what competitors kept separate.

Read →
Benzinga
February 2025

Nike-Kim Kardashian Partnership Just 'One of a Dozen' Fixes The Brand Needs

The Nike thesis closes. Stock down 26%, CEO ousted, DTC strategy reversed. The problems I covered in 2017 confirmed a decade later.

Read →