(FORTUNE Magazine) – It's probably safe to say that no one is as thankful for the 1970s revival as the people at Adidas. The German sportswear manufacturer's triple-striped gear has come back into fashion (again) with gale force--and brought new life to the flagging company (see "Adidas: Back in the Game," Aug. 18, 1997). Sales in America grew 51% last year to a record $1 billion. But Adidas is now eschewing the very retro buzz that resuscitated it by limiting sales of retro goods to 10% of North America's business. Why? It wants to identify the company with performance, not current fashions, which are apt to change.

That may be a sound way to push the brand, but Adidas, with roughly 7% of the sportswear market, is also cashing in on a consumer truism: that Nike's ubiquitous swoosh--45% of the market--will lose its distinction. After all, wanting what you can't easily get never goes out of style.

--Shaifali Puri