The Strategist

Adidas to sell Reebok


10/23/2020 - 03:31



Adidas is considering selling the Reebok brand due to its unsatisfactory financial results. This is reported by Bloomberg with reference to a source in the company.



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snappygoat
According to the agency, the discussion of the future of Reebok has just begun, and the final decision on the fate of the brand will be made in a few months. Adidas itself did not comment on this information.

Reebok was bought by Adidas in 2006 for $3.8 billion. As a result of the deal two of the world's largest manufacturers of sports shoes and equipment found themselves under the same roof. However, Reebok's financial performance has been disappointing in recent years. 

Kasper Rørsted, who led Adidas in 2016, has nevertheless always rejected the option of selling the brand. Instead, Reebok's business optimisation plan was developed and implemented, with massive cuts and closure of shops. 

As a result, the brand returned to profitability in early 2019. However, the COVID-19 pandemic has once again spoiled the manufacturer's performance: in the second quarter of this year, its sales sagged more heavily than those of the sister brand (by 42% against 33% for Adidas).

source: bloomberg.com




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