Sneaker sales slowed, discounts rose, and hype cooled. Here is what changed for Nike, Adidas and retailers in 2023-2024, and how the cycle may reset.
Shoppers noticed it first in the window displays. More markdown stickers, more classic styles piling up, fewer lines outside Saturday drops. The sneaker market is losing heat, and the shift is not a vibe thing only, it shows up in earnings, guidance and store plans.
Brands and retailers moved from shortage to surplus in barely two years. Nike flagged a tougher runway, Adidas counted the cost of its Yeezy exit, and major chains trimmed ambitions. The message is clear from recent filings and trading updates : demand for sneakers is softer, hype is less reliable, and price discipline cracked during big end of year promotions.
Hard signals of a slowdown : Nike, Adidas and retail warnings
Numbers told the story before social feeds did. Nike outlined a plan to cut costs by up to 2 billion dollars over three years in December 2023, including workforce reductions and product streamlining, citing the need to sharpen focus on winning franchises and speed, according to Nike and Reuters on 21 December 2023.
Then came a colder outlook. On 27 June 2024, Nike said it expected fiscal 2025 revenue to decline in the mid single digits, a rare pullback for the industry leader, reported Reuters the same day. Investors read it as confirmation that demand and wholesale orders had cooled.
Adidas faced a different shock, but the effect rhymed. After ending the Yeezy partnership, Adidas posted its first annual operating loss in more than three decades in 2023, a 377 million euro hit, per Reuters on 13 March 2024. The company later sold remaining Yeezy inventory, yet the hole left in momentum was visible through the year.
Retailers felt the squeeze as promotions piled up. JD Sports Fashion issued a profit warning on 4 January 2024, guiding lower profit before tax due to heavy discounting in sportswear and footwear during the holiday period, noted the Financial Times and company statements that day. Foot Locker leaned into a reset too, saying on 20 March 2023 it would close around 400 mall stores by 2026 as part of its Lace Up plan, according to Reuters.
Why demand softened : hype fatigue, too many drops, tighter wallets
There was a cycle shift. During 2020 to 2021, scarcity and stimulus pushed limited releases to the moon, resale premiums surged, and brands leaned into frequent drops. By late 2023, the machine flooded the market with lookalike colorways, shoppers felt déjà vu, and the thrill faded.
Budgets changed too. Inflation through 2022 reset what families spend on fashion, then big holiday promotions in 2023 trained consumers to wait for lower prices. JD Sports’ warning underscored that promotional pressure in the peak season squeezed margins and signaled weaker full price appetite.
Wholesale ordering patterns added friction. When retailers carry extra inventory, they cut orders for the next season. That feeds back into brand guidance. Nike’s June 2024 outlook hinted precisely at that reset, from partners managing stock to the brand prioritizing fewer, stronger franchises over broad assortments.
The hype ecosystem cooled as well. With more general release pairs available and fewer must have novelties, resale flipped from a profit engine to a clearance valve. Marketplaces saw prices normalize toward retail, which removed the fear of missing out that once pulled in casual buyers. Defintely a different psychology at checkout.
What can reignite growth : scarcity perfected, stories that travel, prices that make sense
Less noise, more signal. Brands that trim the calendar, protect scarcity on true halo products and scale only the right classics tend to rebuild desire. That means guarding a few hero lines, not blasting endless minor variations that train shoppers to wait for markdowns.
Story first, silhouette second. The pairs that still cut through in 2024 ride clear narratives people want to wear, from terrace heritage to performance tech that feels genuinely new. Adidas has leaned into retro terrace models like Samba and Gazelle, while others are revisiting track and court icons with modern comfort. The idea is simple : make the story easy to tell in one sentence, then let availability stay tight.
Retail math needs a reset too. Promotions work for clearing, not for love. Retailers that right size inventory, cleanly segment price tiers, and reserve full price moments for true heat tend to rebuild margins and trust. Nike’s multiyear cost program, announced in December 2023, points to a leaner product pipeline and faster reads on demand, which can reduce overbuilds and stabilize sell through.
One more piece matters, the consumer journey. Frictionless discovery, sizes in stock, fair prices, and drop mechanics that do not feel like a lottery help win back occasional buyers who drifted away after 2021. When scarcity feels earned and selection feels curated, not crowded, sneakers start to feel special again.