"Going forward, the company intends to focus its efforts on further strengthening the leading position of the Adidas brand in the global sporting goods market," Adidas said in a statement.
The company will unveil more details on the strategic business plan until 2025 at its virtual Investor and Media Day on March 10, 2021.
“The long-term growth opportunities in our industry are highly attractive, particularly for iconic sports brands,” said Adidas CEO Kasper Rorsted. “After careful consideration, we have come to the conclusion that Reebok and Adidas will be able to significantly better realise their growth potential independently of each other. We will work diligently in the coming months to ensure a successful future for the Reebok brand and the team behind it.”
As a result of the successful implementation of the turnaround plan "Muscle Up" initiated in 2016, Adidas was able to significantly improve Reebok's growth and profitability prospects, laying the foundation to unleash its full potential in the highly attractive global sporting goods market.
In Q3 2020, Reebok’s net sales fell 7 per cent to €403 million ($488 million), after a decline of 44 per cent the preceding quarter. In 2019, Adidas wrote down Reebok’s book value by nearly half, compared with 2018, to €842 million.
Fibre2Fashion News Desk (RKS)