adidas to report Reebok as discontinued operations from Q1 2021 onwards

18 February 2021: Adidas is going to report Reebok as discontinued operations from the first quarter 2021 onwards. More details on adidas’ strategic business plan until 2025 will be unveiled at the company’s virtual Investor and Media Day on March 10, 2021. This is as a part of the development of its new five-year strategy. The new plan was announced by Adidas in December 2020. These strategic alternatives include both a potential sale of Reebok as well as Reebok remaining a part of the company.

adidas has concluded its assessment of strategic alternatives for Reebok. As a result of this review, the company has now decided to begin a formal process aimed at divesting Reebok. The company intends to focus its efforts on further strengthening the leading position of the adidas brand in the global sporting goods market.

It may be noted that adidas acquired Reebok in 2006. As a result of the successful implementation of the turnaround plan “Muscle Up” initiated in 2016, the brand was able to significantly improve its profitability and returned to the profit zone in 2018, two years earlier than initially planned under “Muscle Up”. In 2019, Reebok also returned to the growth path. Driven by double-digit growth in its home market North America, global Reebok sales increased by 2% on a currency-neutral basis compared to the previous year.

adidas CEO Kasper Rorsted said “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. We will work diligently in the coming months to ensure a successful future for the Reebok brand and the team behind it. The long-term growth opportunities in our industry are highly attractive, particularly for iconic sports brands.”