Blog: Reebok still tripping up Adidas
Leonie Barrie | 6 May 2008
Three years after it bought Reebok, Adidas is still trying to reposition the brand. How long, I wonder, until its patience wears thin?
The sporting goods group today said profits rose 31.5% to EUR169m, with sales up 3% on a currency-adjusted basis to EUR2.621bn. But this rise – which prompted chief executive Herbert Hainer to say “We are off to a fast start to 2008” – was led by demand for Adidas goods and TaylorMade golf equipment.
On the Reebok front, sales fell 6% in the quarter and, more alarmingly, order backlogs – a measure of future sales – were down 13% year-on-year.
And while Adidas is looking forward to a boost from this year’s Olympic Games and Euro 2008 soccer championships, the Reebok division appears vulnerable to the slowdown in US consumer spending.
There is some consolation from the Reebok purchase though: the acquisition has helped Adidas negotiate cheaper prices from suppliers.
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