New Adidas CEO Is Planning To Overhaul Reebok
The new boss of Adidas announced plans on Thursday to overhaul struggling fitness brand Reebok and keep up the focus on reviving the main Adidas business in North America as he dampened expectations for 2017. Adidas shares fell more than 8% as momentum eased in the third quarter and chief executive Kasper Rorsted said growth would slow next year. The shares had risen two thirds this year after the company raised its 2016 outlook four times to trade at a big premium to U.S. rival Nike. “For the first time in many quarters Adidas reported quarterly numbers that did not beat market expectations. This could cause some short term profit taking,” said DZ Bank analyst Herbert Sturm, who rates the stock “hold.” Rorsted, who took over last month, told journalists he does not expect Adidas to reproduce the same revenue and profit growth next year after soaring demand for Superstar sneakers and Ultra Boost running shoes put it on course for a record 2016. Read more at Fortune.
