Forget Yeezys. Adidas' new CEO says Sambas and Gazelles are the 'hottest shoe in the market'

• Adidas Yeezy is gone, but Adidas terrace shoes like the Samba and Gazelle can pick up the slack.
• CEO Bjørn Gulden called the sneakers a very fast-growing "franchise" for the company.
• "It's something that if we manage it correctly, can be millions and millions of pairs," he said.

The Adidas Yeezy business is gone — minus the remaining inventory worth $1.3 billion in sales that the sportswear giant has yet to shed. 

And while Adidas still has some A-list celebrity partnerships, it believes its classic sneakers will go a long way in recouping some of the lost Yeezy revenue. According to TD Cowen, Yeezy generated $1.2 billion in sales in 2022, prior to Adidas cutting ties with Ye in October.

Adidas Sambas, Gazelles, and Spezial sneakers, what the company calls Terrace shoes, are having a moment. The sneakers have become a staple in retro 1990s clothing styles that have been brought back by Gen Z consumers. The sneakers have a long history with the brand. Adidas first introduced Sambas in 1949. Gazelles were first released in the 1960s; Spezials came out in the late 70s.

"We currently have maybe the hottest shoe in the market, in the segment we call Terrace, and it's the Samba," CEO Bjørn Gulden told analysts on a fourth-quarter earnings call this week. "And you have seen it for a while, coming in on fashion shows and also on celebrities that have actually bought the shoes themselves."

Gulden called Sambas, Gazelles, and Spezials a very fast-growing "franchise" for Adidas. The company launched a pop-up store in Shanghai this week dedicated to the Samba.

"And as you can see, people are lining up to buy only one product," Gulden said while directing analysts to a prepared visual presentation.

"It's hot in Asia, hot in Latin America, hot in Europe, and in America, and I can't remember the last time I saw that," he added, speaking of Terrace shoes. "So look for the Samba, look for the Gazelle, and ironically also the Spezial, which was actually a handball shoe that even I used when I was playing, which probably tells you how old I'm getting."

In 2022, Adidas launched a collection with Gucci that included several new Gazelle colorways. This year, Adidas is also partnering with fashion designer JJJJound on at least two pairs of Sambas. JJJJound has previously worked with brands like New Balance, Asics, and A Bathing Ape on sneaker collaborations.

"I think it's something that if we manage it correctly, can be millions and millions of pairs," Gulden told analysts. " And it's the first test to see if we can manage, now, a new franchise in the right way by keeping it alive, heating it up every quarter, without over distributing it, so we start to discount."