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Why Adidas is Optimistic New Styles Will Help Maintain Momentum in the US

After a hot run with retro models like the Stan Smith and Superstar, Adidas is looking for its next hero shoe.

In an interview with Reuters, Mark King, president of Adidas’ North America business, said the company is working toward better managing the demand for its popular styles and was being careful not to oversaturate the market.

“In the past we have shipped too many at times, and now we’re very cautious about shipping the right quantity,” King told Reuters.

The rise of retro franchises like the Superstar, which was one of the top selling sneaker styles in the U.S. last year, helped Adidas push ahead of Under Armour and tested long-time rival Nike.

In 2016, Adidas sales in North America increased 24 percent to $3.82 billion. It was the company’ best performance ever in the region. However, Reuters reported that analysts have questioned the longevity of Adidas’ growth, which many see relying too much on fashion sneakers, rather than performance footwear.

King pointed out that while the company benefited from fashion trends, it remains focus on its core athletic categories like football, baseball and soccer cleats and basketball shoes. He told Reuters new product lines like NMD, Tubular, Ultraboost and Alphabounce will offset the softening demand of retro styles.

Indeed, Adidas is ramping up its efforts in performance and technology. Adidas recently introduced Forgefiber, an innovative stitching technology designed to provide precise fit and support in performance footwear. Adidas also rolled out new colorways of its Parley collection made with Parley Ocean Plastic, but the brand isn’t cutting all ties to its past. This summer and fall, the brand is building buzz around the iconic Campus, which is getting an update with premium materials and new colors.