adidas Announces Formal Plans to Divest from Reebok

A forthcoming five-year strategy from adidas will include reporting as Reebok as a “discontinued operation” as of Q1 2021.

By
Footwear
8,329 Hypes 10 Comments

Today, adidas announced plans to formally divest from Reebok as part of a forthcoming five-year strategy, which will include reporting adidas as a “discontinued operation” starting with the first quarter of 2021. The company will reveal further details about this plan alongside its 2020 yearly results on March 10.

“Reebok and adidas will be able to significantly better realize their growth potential independently of each other,” adidas CEO Kaspar Rorsted said in a statement acquired by Reuters.

In 2006, the German sportswear company acquired Reebok for $3.8 billion USD, and in the years since has focused on bolstering sales performance, shuttering underperforming outposts and cutting expenses in an effort to turn around the Boston-based brand. However, Reuters’ banking source estimates that Reebok is currently worth about €1 billion EUR ($1.2 billion USD).

This lackluster performance has led to recent rumblings that adidas may cut ties with the Boston-based brand. Reports of unhappy investors and Reebok’s potential sale emerged in October 2020, following the release of adidas’s Q2 2020 earnings that revealed Reebok-generated revenue was down 42 percent and sales fell as much as 44 percent. Rumors of adidas’s newly announced five-year strategy emerged in December, alongside reports that Rorsted was looking to sell Reebok for $2.4 billion USD; possible buyers at the time included private equity firms Permira and Triton as well as VF Corp.

But in spite of the turbulence, Reebok releases have continued to come down the pipeline, notably with a recent rework of the 1985 Club C silhouette.

Read Full Article

What to Read Next

adidas Is Reportedly Looking To Sell Reebok
Footwear 

adidas Is Reportedly Looking To Sell Reebok

Following a Q2 2020 earnings report that noted Reebok revenues down 42 percent.

adidas Originals' ZX 8000 Has Morphed Into a Reebok Instapump Fury
Footwear

adidas Originals' ZX 8000 Has Morphed Into a Reebok Instapump Fury

The ZX Pump combines classic “Aqua” and “Citron” tones for a mashed-up hybrid sneaker.

adidas' "Sky Tint" UltraBOOSTs Go From Cloudy to Clear
Footwear

adidas' "Sky Tint" UltraBOOSTs Go From Cloudy to Clear

One offers a more stormy blend of hues, while the other provides a look as crisp as a sunny, cloudless day


adidas Reportedly Considering Possible Sale of Reebok
Footwear 

adidas Reportedly Considering Possible Sale of Reebok

Originally acquired for $3.8 billion USD back in 2006.

Specialized Aims to Deliver the Perfect Ride With the Aethos
Design

Specialized Aims to Deliver the Perfect Ride With the Aethos

Set to revolutionize the future of modern road bikes.

A Ma Maniére Announces Air Jordan 3 Collaboration
Footwear

A Ma Maniére Announces Air Jordan 3 Collaboration

Continuing the Whitaker Group’s penchant for elevated, luxurious designs.

Mad Dog Jones to Drop Tokenized Animations of Neon-Filled Tokyo Scenes
Arts

Mad Dog Jones to Drop Tokenized Animations of Neon-Filled Tokyo Scenes

A total of 10 NFT-based works.


Nike's Beloved Air Max 90 "Bacon" is Finally Getting a Reissue
Footwear

Nike's Beloved Air Max 90 "Bacon" is Finally Getting a Reissue

The collaboration which originally launched alongside Dave’s Quality Meat in 2004 is finally coming back.

Tony’s Chocolonely Teams Up With Pharrell To Level the Playing Field for Black Entrepreneurs
Food & Beverage 

Tony’s Chocolonely Teams Up With Pharrell To Level the Playing Field for Black Entrepreneurs

Presented by Tony’s Chocolonely
With a new bar that contributes to funding the Black Ambition Program.

Porsche Unveils the All-New 911 GT3
Automotive

Porsche Unveils the All-New 911 GT3

The 992-generation track monster features a new hardcore design.

More ▾
 
Subscribe to our Newsletter

Gain access to exclusive interviews with industry creatives, think pieces, trend forecasts, guides and more.

By subscribing, you agree to our Terms of Use and Privacy Policy.

Adblock Detected.

We charge advertisers instead of our readers. If you enjoy our content, please add us to your adblocker's whitelist. We'd really appreciated it.