Adidas Investigates the Possibility of Selling the Struggling Reebok
This option is being considered by the German sports equipment manufacturer, which acquired the American brand Reebok in 2006.
The German sports equipment manufacturer Adidas, Nike’s main competitor, does not rule out the possibility of selling Reebok, its ailing American subsidiary, acquired in 2006 for 3.1 billion euros. This is in any case one of the options considered for the future of this brand.
Regular rumors about a possible sale
Since its acquisition by the German group, Reebok, specializing in women’s sportswear, has always been considered a problem child within the equipment manufacturer, regularly fueling rumors about a possible sale. The brand is only worth 803 million euros on the group’s balance sheet after several accounting depreciations. The latest came in August after a 42% drop in sales in the second quarter to 228 million euros, heavily affected by the coronavirus pandemic. Reebok’s revenue grew another 2% in 2019 to € 1.75 billion, a small portion of the € 23.6 billion for the entire Adidas group.
If a recovery plan launched in 2016 allowed Reebok to “regain profitability in 2018” or “two years earlier than expected”, according to the press release, the group does not make a forecast for the year 2020. On the stock market, Adidas shares climbed after this announcement by 1.66% to 288.0 euros in a Dax index up almost 1%.
Adidas Investigates the Possibility of Selling the Struggling Reebok - /10