Blog: Leonie BarrieReebok 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.

Adidas Q1 profit climbs despite Reebok slump


BLOG

Esquel's eco-friendly manufacturing complex

Hong Kong-based Esquel Group, the world's largest woven shirt maker, has been bedding-in operations at a ground-breaking new $313.3m eco-friendly manufacturing complex in southern China....

BLOG

Tariffs back at top of Trump's trade agenda

Tariffs soared back to the top of Trump's trade agenda last week, with the imposition of punitive tariffs on imports of steel and aluminium, and plans to proceed with an additional 25% tariff on impor...

BLOG

Digitalisation goalposts constantly evolving

The debate and discussion around digitalisation continues to top the apparel industry’s agenda – but as Spencer Fung, group CEO of Li & Fung explains, the goalposts are constantly evolving....

BLOG

The disruption of digitisation

There's currently a lot of talk about how the digitisation of key processes along the clothing supply chain can bring benefits ranging from faster decision-making to improved efficiency, transparency ...

just-style homepage



Forgot your password?