Adidas will cut Reebok loose following an assessment undertaken as part of the retailer’s soon-to-be-announced five-year strategy. As a result, it will report Reebok as “discontinued operations” from Q1 2021 onwards. This will enable the company to focus on strengthening the adidas brand in the global sporting goods market.
Adidas initially acquired Reebok in 2006 and implemented the “Muscle Up” turnaround plan in 2016. However, the coronavirus pandemic weighed heavily on recent results: Reebok’s revenues fell 7% in Q3 2020 compared to the previous year, compared to a 2% decline for adidas.
“The long-term growth opportunities in our industry are highly attractive, particularly for iconic sports brands,” said Kasper Rorsted, CEO of adidas in a statement. “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.”
More details on adidas’ strategic business plan through 2025 will be unveiled at the company’s virtual Investor and Media Day on March 10, 2021.