How to profit from the sneaker wars just like Wall Street plans to: Nike stock is down, Adidas is at war with Bella Hadid — but investors are still betting on major sporting events

Trainers, kicks, sneakers or creps. Whatever you call this form of footwear, almost everyone wears them, leading to predictions that the global market could be worth £92 billion by 2032, up from £70 billion today.

The sector will come under even greater scrutiny than usual in the coming weeks as teams compete for honours wearing leading brands at the Olympic and Paralympic Games in Paris.

And shoemakers will battle for dominance as the ‘sneaker wars’ heat up.

Team GB will wear the German brand Adidas. Team France will compete for Le Coq Sportif, owned by the Swiss company Airesis.

Team USA will be in Nike, a brand hoping the publicity can reverse its decline. Sales have been falling as the American giant faces competition from names like Hoka, which makes running shoes, and privately held New Balance. Nike’s classic style, the Jordan, named after basketball star Michael Jordan, no longer appeals to Gen Z customers.

With Nike shares down 33 percent in the past year, questions are being asked about the strategy of CEO John Donahoe, who joined the company in 2020 with a background in technology rather than sportswear.

Adidas has been doing a lot better of late, with shares up 30 percent in 12 months. Its Samba sneakers are worn by Bella Hadid, Harry Styles — and plenty of fashionable women, who pair them with a floral maxi dress.

When then-Prime Minister Rishi Sunak was photographed in a pair earlier this summer, fashion fans were shocked. But somehow Sambas became even cooler.

Adidas may have found itself embroiled in controversy over its Yeezy collaboration with Kanye West, a deal that ended in 2022 amid a spat over the rapper’s public comments and behavior. But the company has managed to turn things around — perhaps thanks to its robust social media presence. That presence was exemplified this week by the storm of protests over the use of Palestinian-American model Bella Hadid in the campaign for its relaunched SL72 line of sneakers, named after the 1972 Olympic Games, during which 11 members of the Israeli Olympic team were killed by Palestinian terrorists. Adidas is reconsidering the ads following an outcry over Hadid’s stance on Palestine, but has also issued a broader apology to her and all stakeholders.

The internet has a powerful influence on the sneaker wars, as have popular TV shows. As the Wall Street Journal reported, there’s a whole world of “status sneakers” for those who want the off-duty look of the fabulously wealthy protagonists in the HBO drama Succession. At £900 a pair, the Zegna Triple Stitch is a prime example of this aesthetic.

Skechers, another American brand, has signed a lifetime deal with footballer Harry Kane. The shoes will be worn by the Malaysian Olympic team. Sketchers shares are up 20% from a year ago.

Reebok has been a casualty of the sneaker wars. The British-founded company was bought by Adidas in 2005 for $3.1 billion before being sold to investment firm Authentic Brands Group for just $2.5 billion in 2021. The company has been left firmly in the shadow of Nike and its former parent company.

Puma is another victim, with shares down 20 percent in the past year. The German company once sponsored star sprinter Usain Bolt, but his appeal has waned.

So, is it too late to back Adidas? Or could a bet on Puma or Nike be a medal-winning move? We also rank stocks from sneaker wars competitors, manufacturers and retailers. You can buy them via most investment platforms.

Nike

Shares in Nike have fallen 32 percent in a year to $73, with a market value of $110 billion. They are down 18 percent in five years.

The brand remains instantly recognizable worldwide and as one star endorsing the company’s products fades, another will undoubtedly emerge. The recent drop in share price is a good buying opportunity if you believe in the long-term prospects.

Analysts give Nike shares a consensus rating of Buy, according to Nasdaq.com. The average price forecast for the 12 months is $92, based on estimates from 33 analysts.

Adidas

Adidas shares have risen 30 percent in the past year but have fallen 18 percent in the past five years, taking its market value to €40 billion.

The strong share price rise should be reason to be cautious, but the fundamentals that have made the company successful over the long term and the strength of its brands make it a relatively sound investment at any time.

According to Investing.com, Adidas has a Buy rating from 30 analysts, with an average price forecast of €224 for the next 12 months.

puma

Puma shares have fallen 20 percent in one year and 28 percent in five years to €43, equivalent to a market value of €6.6 billion.

It may struggle to compete with the celebrity-like Nike and Adidas, but it is significantly leaner than the two giants. This means lower costs and that it needs to sell far fewer sneakers to make a profit.

According to Investing.com, Puma has been given a Neutral rating by 21 analysts, with a price target of €54 for the next 12 months.

JD Sports Fashion

JD Sports shares are down 21 per cent in the past year and 8 per cent over five years to 113p. The market capitalisation is £5.9bn.

The retailer is a keen player in the sneaker wars, with Nike and Adidas products making up a large portion of its inventory. If people are buying more sneakers because of the latest trend or celebrity endorsement, there’s a good chance JD Sports will benefit.

According to Investing.com, JD Sports has a Buy rating from 15 analysts and an average price target for the next 12 months is 164p.

Under armor

Under Armour shares have fallen 11 percent in the past year and 74 percent in five years to $7, giving the company a market value of $3 billion.

Besides the two big sneaker makers, Under Amour is one of the most popular brands, especially in America. The company has a sponsorship deal with basketball player Steph Curry and has worked with wrestler-turned-movie-star Dwayne ‘The Rock’ Johnson.

According to Nasdaq.com, the consensus rating is Buy, with an average price expectation of $7.40 for the next 12 months, assessed by 23 analysts.