When the American sportswear retailer announced the return of its controversial founder as CEO Wednesday, investors were perplexed. BoF unpacks why Plank may be back — and the challenges that lie ahead in his bid to transform its fortunes.

At least not in the traditional sense. A soon-to-launch Berlin flagship will sell stuff, but it’s brand partnerships that are expected to make the company’s latest retail experiment work.

Vogue-produced campaigns, streetwear tie-ups, fashion week events and special relationships with Off-White and Puma have helped Italian giant AC Milan infiltrate the industry where other teams have fallen short.

The trend marks a break from the past, when Nike retailers enjoyed the ability to sell through their Nike inventory at full price.

The sportswear brand surpassed $1 billion in revenue in 2022, buoyed by soaring demand for its fashion-forward performance products, parent-company Amer Sports’ IPO filing revealed.

Spending cooled in 2023 as shoppers grappled with inflation, debt and high mortgage rates. Some retailers were more vulnerable than others. The strongest players are able to meet consumers where they are, through thick and thin.

The lines between functionality and style will continue to blur as consumers continue to embrace ”gorpcore” and competition increases among technical outdoor wear players, according to The State of Fashion 2024.

As sportswear rivals jockey for position ahead of next year’s Paris Olympics, Adidas is aiming to stamp its brand on smaller events such as breaking, climbing, skateboarding and BMX.