Adidas is launching an unprecedented attack on Under Armour's home turf

Adidas is doubling down on its American invasion.

The German sportswear giant is increasing its focus on the US market, where it’s taking the fight to its rivals Nike and Under Armour.

Adidas has been on a tear as of late, riding the tide of better-performing lifestyle products like its Originals, Neo, and Y3 lines. According to Bloomberg, sales of those categories rose 45% in 2016, amid a slump in traditional performance-oriented sportswear.

“The lifestyle market is a lot bigger than the sports market, so we have to participate in that,” outgoing CFO Robin Stalker said at a press conference. “There are the Stan Smiths and Superstars, but there are also other products we will manage over many seasons.'”

Casualwear is now 30% of Adidas’ sales, which is indicative of broader industry trends that have consumers shifting away from the performance-oriented offerings of brands like Under Armour.

The focus on the US market makes sense for Adidas, as it’s one of the largest in the world for sportswear. Roughly 85% of Under Armour’s revenue comes from North America. The US is also the only market where Adidas trails sportswear leader Nike by a significant market share, and it’s looking to make up some ground with its new initiatives.

Adidas said it is looking to adopt a model that’s similar to fast-fashion houses, where product can be ordered based on demand instead of in bulk. It also aims to quadruple its online sales to 4 billion euros by 2020. The brand said it is looking to offload its non-core businesses, like its Taylormade golf products and the hockey brand equipment brand CCM, so it can focus on the namesake brand and a still-struggling Reebok.

The company raised its outlook ahead of its 2016 earnings announcements, saying it expects profits to raise in the low 20% range each year until 2020.

NOW WATCH: Sneaker fanatics are driving a massive $US1 billion resale market

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.