Adidas To Sell Reebok Brand Due To Declining Sales

If there is one brand which is easily recognisable in the sports industry, it is Adidas and its iconic three black stripes.  Adidas is one of the world’s largest sportswear brands which is known for its footwear, clothing apparel and accessories.  One of Adidas’ famous acquisitions was another sportswear brand Reebok which it acquired in 2006 for a price of roughly $ 3.8 billion.  The acquisition was made so Adidas could compete with another sportswear brand Nike.  However, since then Reebok consistently posted declining sales figures much to the disappointment of the Adidas management.

Adidas, in a statement finally announced they were looking to sell the Reebok brand from its portfolio.  “After careful consideration, we have come to the conclusion that Reebok and Adidas will be able to significantly better realize their growth potential independently of each other,” Adidas CEO Kasper Rorsted said in a statement.  “We will work diligently in the coming months to ensure a successful future for the Reebok brand and the team behind it.”

In 2007, a year after Reebok was acquired by Adidas, the former accounted for almost a quarter of Adidas’ total sales.  In the quarter ending in September 2020, only 6.7% of Adidas’ net sales came from Reebok.  A banking source estimated that Reebok brand could be valued at $ 1.2 billion.

ALSO READ: Carl Pei’s Nothing Invites Retail Investors 

Adidas was instrumental in developing the spiked running shoes which most sportsmen use on a daily basis today.  Adidas also was responsible for the transitioning from metal spikes to rubber and canvas spikes.  It will be interesting to see what the future holds for Reebok as it still has a lot of consumers and is one of the prominent brands in the sporting sectors.