Adidas exploring strategic options, including sale, for Reebok

REUTERS -German sportswear maker Adidas AG said on Monday it was considering strategic options, including a potential sale, for Reebok, 15 years after it bought the U.S.-focused brand to take on arch rival Nike Inc on its home turf.

The decision will be announced on March 10, when the company officially presents its new strategy, Adidas said.

"These strategic alternatives include both a potential sale of Reebok as well as Reebok remaining a part of the company," Adidas said in a statement.

Adidas bought Boston-based Reebok for US$3.8 billion in 2005, but a lack of progress in turning it around led to repeated calls from investors to dispose of the brand.

In 2019, Adidas wrote down Reebok's book value by nearly half, compared with 2018, to 842 million euros (US$1.02 billion).

The unit's net sales fell 7per cent in the third quarter of 2020 to 403 million euros (US$489.40 million), after falling as much as 44per cent in the preceding quarter.

Recent collaborations with celebrities like Cardi B and a refreshed focus on women's apparel have put the brand in a better place, said Jessica Ramirez, retail analyst at Jane Hali & Associates.

"Reebok won't be much of a burden for who ever takes it on if there is a sale," Ramirez added.

Adidas said earlier in November that it was expecting a drop in overall sales for the last three months of the year as the reimposition of lockdowns in Europe would likely offset a return to growth in China and strong demand for running gear and products designed by singer Beyonce.

(US$1 = 0.8235 euros)

(Reporting by Thomas Seythal, Uday Sampath Kumar and Shradha Singh; editing by Kirsti Knolle and Anil D'Silva)