German apparel and shoe retailer adidas announced on Monday (14 December) that it has initiated a process to review whether to sell its underperforming brand – Reebok.
The sportswear retailer said that it will announce the decision on 10 March 2020.
The decision is being seen as a part of adidas’ new 5-year business strategy. After buying Reebok in 2006, adidas brought the brand to profitability in 2018.
Though Reebok’s sales rose by 2 per cent in 2019, adidas didn’t seem too happy with the growth rate.
In October this year, adidas first gave hints that it is planning to sell Reebok due to latter’s sluggish performance. To make matters worse, the last quarter saw adidas’ sales go down by 2 per cent and Reebok’s sales slump by worrying 7 per cent.
Though not confirmed, there are reports that Reebok is attracting interest from sporting goods firms across the globe – particularly from Asia.
adidas hoped to sell Reebok for US $ 2.4 billion much before the pandemic happened, but now it may, reportedly, even accept a comparatively lower price for the brand.
Founded in 1924, adidas generated €21.915 billion in 2018.
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