Athletic Lifestyle Product Is Turning into a Tough Promote in Europe

There’s softness in life-style sneaker demand throughout Europe.

BNP Paribas fairness analysis senior analyst Laurent Vasilescu doesn’t assume there’s a near-term restoration on the way in which for the class, following sequence of calls with Dieter Schott, the business director and senior govt of Sport 2000. Sport 2000 is a number one sporting items retailer in Europe — it has 3,000 areas that generated 5.3 billion euros in income in 2025. A latest group name targeted on class developments and early reads for 2026.

Lifestyle footwear, primarily sneakers, accounted for 18 % to 19 % of 2025 gross sales at Sport 2000, down from 25 % in 2024. The phase is below stress amid elevated stock ranges and heavy promotions which might be anticipated to proceed within the first half of 2026.

Vasilescu famous Schott’s view that Nike‘s decision to step back from the wholesale channel prior to Elliott Hill’s tenure as CEO would possibly nonetheless be impacting its relationship with retailers, together with Sport 2000. During that pullback, retailers gave shelf area to competitor manufacturers, together with Hoka, Puma, New Balance and On. And whereas Nike’s latest shoe improvements are typically nicely acquired, they haven’t translated into stronger client demand in a “meaningful” manner within the mass-market worth tiers, at the very least not throughout the European market at Sport 2000 areas, in keeping with Schott.

But Nike isn’t the one one shedding share in life-style. Vasilescu famous that Adidas has additionally seen a “material slowdown in the lifestyle offerings,” which is a mirrored image of broader softness in life-style sneaker demand.

When Adidas reported fourth quarter outcomes on March 4, CEO Bjørn Gulden did word that whereas the quarter ended higher than the corporate anticipated, the corporate’s forecast was that development would gradual in 2026. Adidas predicted that gross sales would proceed to develop, however solely within the high-single digits. During an organization convention name, Gulden additionally famous a broader development — that in Europe and America, there look like “a lot of red-marked product,” explaining that the reductions are as a result of retailers are afraid of shedding top-line momentum and subsequently making offers.

Nike is about to report third quarter earnings outcomes on March 31. Its second quarter report on Dec. 18, govt vice chairman and CFO Matthew Friend mentioned throughout the firm convention name that income was down 1 % in EMEA (Europe, Middle East and Africa). “EMEA has maintained a healthy marketplace, although promotional activity has been heavier than expected. We saw growth in Central and Eastern Europe and the Middle East, offset by slight declines in Western Europe,” Friend mentioned.

Vasilescu additionally famous that what gave the impression to be a slowdown within the life-style sneaker momentum appears to match the “recent return to dress trend with consumer preferences shifting toward dressier silhouettes like ballet flats and Mary Janes.” And whereas Sport 2000’s Schott mentioned the 2026 World Cup could possibly be a key model constructing second for Nike, Vasilescu mentioned his estimation is that the income profit from the occasion “will be small and one-time in nature.”

To make sure, for rising sneaker manufacturers that aren’t as nicely referred to as both Nike or Adidas, it received’t take a lot for them to maneuver the needle when it comes to model development. Vasilescu concluded: “[W]e are incrementally upbeat on the abilities of emerging brands to continue to take share and grow in the coming years.”