European Sneaker Market Faces Headwinds as Demand Softens
The European lifestyle sneaker market is experiencing a slowdown, with no immediate recovery in sight, according to recent analysis from BNP Paribas. The assessment follows discussions with Dieter Schott, Commercial Director and Senior Executive of Sport 2000, a major European sporting goods retailer with 3,000 locations and €5.3 billion in revenue in 2025.
Decline in Sneaker Sales at Sport 2000
Lifestyle footwear, particularly sneakers, represented 18-19% of Sport 2000’s 2025 sales, a decrease from 25% in 2024. This segment is currently under pressure due to high inventory levels and ongoing promotional activities expected to continue through the first half of 2026.
Nike’s Wholesale Strategy and Retailer Response
Laurent Vasilescu, a Managing Director and Senior Equity Analyst at BNP Paribas, highlighted Schott’s observation that Nike’s previous decision to reduce its wholesale channel presence may still be affecting its relationships with retailers like Sport 2000. During this pullback, retailers allocated shelf space to competing brands such as Hoka, Puma, New Balance, and On. While Nike’s recent product innovations have been generally well-received, they haven’t significantly boosted consumer demand in the mass-market price range within the European market at Sport 2000 locations.
Adidas Also Experiencing a Slowdown
The softening demand isn’t limited to Nike. Adidas is also reporting a “material slowdown in lifestyle offerings,” indicating a broader trend within the European sneaker market. During Adidas’s fourth-quarter results announcement on March 4, CEO Bjørn Gulden acknowledged that while the quarter exceeded expectations, growth is projected to slow in 2026, with sales expected to increase only in the high-single digits. Gulden also noted a trend of “a lot of red-marked product” in Europe and America, driven by retailers offering discounts to maintain sales momentum.
Nike’s EMEA Performance and Shifting Consumer Preferences
Nike reported a 1% decrease in revenue for the EMEA region (Europe, Middle East, and Africa) in its second-quarter report on December 18. Despite a “healthy marketplace,” promotional activity was higher than anticipated. Growth in Central and Eastern Europe and the Middle East was offset by slight declines in Western Europe. Laurent Vasilescu also pointed to a shift in consumer preferences, with a resurgence of dressier footwear like ballet flats and Mary Janes contributing to the slowdown in sneaker momentum.
Limited Impact Expected from the 2026 World Cup
While the 2026 World Cup could offer a branding opportunity for Nike, Vasilescu estimates that the revenue benefit will be “small and one-time in nature.”
Opportunities for Emerging Sneaker Brands
Despite the challenges faced by established brands, emerging sneaker companies have the potential to gain market share. Vasilescu believes these brands are “incrementally upbeat” about their ability to grow in the coming years.