Why Wales Bonner to Hermès Is Good News For Adidas
Adidas' sharp eye when it comes to picking cultural partners has led to its most prized collaborators (Pharrell and Wales Bonner) leading two of luxury’s most prestigious brands.
Hi everyone, and welcome back to SportsVerse, my twice-weekly newsletter that tells stories you can't find anywhere else about the intersection of sports, fashion, business, and culture.
Inside today’s newsletter, you will find out:
Why Grace Wales Bonner’s appointment at Hermès will have Adidas executives plotting and scheming.
How Adidas' sharp eye when it comes to cultural partners has led to two of its most prized collaborators (Pharrell and Wales Bonner) leading the menswear divisions of two of luxury’s most prestigious houses (LV and Hermès, respectively).
The details of another Adidas profit guidance lift and a lesser impact from U.S. government tariffs than first expected.
I’m struggling to come up with new ways to say “Adidas has had another good week” in this newsletter. But it’s true, so I’ll say it again: Adidas is having another good week.
This week’s Adidas good news bulletin comes in two very different forms. We’ll deal with the serious (but important) good news first:
The German sportswear giant raised its annual profit target earlier this week, now projecting an operating profit of around €2 billion in 2025, up from a previous target of €1.7 billion to €1.8 billion. In other serious and slightly boring (but very good) news, the Financial Times reported that the company now expects the impact of US tariffs in the second half of the year to cost around €100 million, half the €200 million it had previously forecast. (In comparison, Nike said on its most recent earnings call in October that it now expects U.S. government tariffs to cost the business $1.5 billion this year, compared with the $1 billion expected earlier.)
It builds on a stellar 2025 for Adidas so far — marked by a series of cultural wins and successive quarterly fiscal wins — with the brutal loss of its Yeezy sneaker business now firmly in the rearview mirror as the company sets its sights on hunting down its larger rival Nike in North America.
Now that the serious stuff is out the way, let’s deal with the fun news. British designer Grace Wales Bonner was appointed creative director of Hermès’ menswear business. I don’t remember the last time breaking news of this kind in the fashion industry was greeted with such unanimous celebration. For those unaware, roles like this at brands like Hermès don’t just pop up on LinkedIn Jobs or BoF Careers every few months. Wales Bonner’s predecessor, Véronique Nichanian, was in the post for 37 years. Let that sink in. Designing for the ultra-luxury juggernaut Hermès (which generated sales of €15 billion last year) represents the pinnacle of success in the fashion industry.
And why is this relevant to Adidas? Wales Bonner, who has amassed a cult following since launching her namesake London-based menswear label in 2014, happens to be one of Adidas’ most prized designer collaborators, dating back several years now. Wales Bonner’s interpretation of the Adidas Samba played a major role in helping usher in a new wave of popularity for the sneaker as Adidas ramped up sales to meet surging global demand in the wake of its Yeezy crisis. Beyond that, Wales Bonner has also lent her luxury lens to several lifestyle collections under their partnership in recent years, which have helped significantly to boost the fashion credibility and commerciality of Adidas’ lifestyle business.
Adidas execs would have been licking their lips when they heard Wales Bonner was headed for the top job at Hermès. Her role there doesn’t automatically mean we should expect collaborations between the two brands — that seems unlikely at this stage from Hermès’ POV, given how strict and limited the brand is with external partners. But Wales Bonner’s appointment certainly opens the door to the possibility of some form of collaboration, even if that possibility remains slim for now.
The news now means that two of Adidas’ most prized collaborators (Pharrell Williams and Grace Wales Bonner) now helm the menswear divisions of luxury’s most prestigious brands (Louis Vuitton and Hermès, respectively). For sportswear brands like Adidas or Nike — which generate the bulk of their sales from lifestyle/fashion footwear and apparel as opposed to performance products — having connectivity to the upper echelons of the luxury industry can have a valuable halo effect. Take the impact on Nike’s business, for example, when its long-time collaborator Virgil Abloh was appointed artistic director of Louis Vuitton back in 2018.
Adidas hasn’t worked on any form of collaboration with Vuitton since Pharrell’s appointment at the luxury house, but has nevertheless benefited from several positive associations and free marketing moments owing to the company’s pre-existing relationship with him. For example, during his Louis Vuitton spring/summer 2026 show in Paris earlier this year, Pharrell greeted the crowd and revealed a fresh colorway of his Adidas Jellyfish sneaker (seen below) — invaluable free marketing for the Three Stripes on one of luxury’s biggest stages.
There is no doubt that Adidas will be strategising ways to achieve similar placements for its logo and products with Wales Bonner now in position at Hermès.
Adidas’ relationship with both Pharrell and Wales Bonner underscores the importance and value of picking the right collaborators as a sportswear brand. Investing in partnerships with certain cultural figures can have an immense impact on the cultural value of their brand as they grow in their own careers.
It was in that exact vein that I recently analysed the soaring value of Adidas’ relationship with Bad Bunny — set to perform next year’s Super Bowl Half Time Show — and how the brand was smart to start working with him long before he reached the levels of global popularity he enjoys today.
The market is excited for Wales Bonner’s debut at Hermès. I’ll have my eye on how Adidas looks to leverage its relationship with the designer to sneak itself into the luxury house’s universe.
That’s all for today, friends. Thanks for coming along for the ride.
See you next time,
DYM
Big move - for both!
Adidas x GWB tennis drop WHEN tho?