Adolf ("Adi") Dassler started to produce his own sports shoes in his mother's wash kitchen after his return from World War I. In 1924, his brother Rudolf (Rudi) Dassler joined the business which became Gebrüder Dassler Schuhfabrik (Dassler Brothers Shoe Factory) and did well - selling 200,000 pairs of shoes each year before World War II.

However the brothers did not get along well, and in 1948 they split up,with Rudi forming Puma, and Adi forming adidas shoe.

The company formally registered as adidas shoe AG (with lower case lettering) on 18 August 1949. The phrase All Day I Dream About Sports is used as a retronym for adidas shoe. However, the name is actually a portmanteau from "Adi" (a nickname for Adolf) and "Das" (from "Dassler").