The Business of Fashion
Agenda-setting intelligence, analysis and advice for the global fashion community.
Agenda-setting intelligence, analysis and advice for the global fashion community.
HERZOGENAURACH, Germany — Adidas AG raised its forecasts for 2015 and reported third-quarter earnings that topped analysts' estimates as the German sportswear maker sold more sneakers in western Europe and China.
Net income from continuing operations and adjusted for goodwill impairment will rise about 10 percent, Herzogenaurach-based Adidas said in a statement Thursday. The company previously forecast 7 percent to 10 percent growth. Third-quarter profit was 311 million euros ($338 million). Analysts expected 301 million euros, according to the average of estimates compiled by Bloomberg.
“We are reaching the 2015 goal line much faster than we had anticipated,” Chief Executive Officer Herbert Hainer said. Adidas is seeking a successor to its CEO of almost 15 years, and some investors are pressing for an outsider to revamp the company.
Hainer is trying to turn around Adidas after a dismal 2014 by concentrating marketing in the U.S. and in key global cities including London and Shanghai. It’s streamlined its all-important soccer shoe lineup and seeking a buyer for parts of its struggling golf business. Last week, Nassef Sawiris, Egypt’s richest man, emerged as Adidas’ biggest shareholder.
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Sawiris, whose NNS Holding owns 6 percent of the voting rights, has taken an active role at companies he buys stakes in, including cement maker LafargeHolcim Ltd. and building-materials company Texas Industries Inc.
By Aaron Ricadela; editors: Matthew Boyle, Thomas Mulier, Paul Jarvis.
In 2020, like many companies, the $50 billion yoga apparel brand created a new department to improve internal diversity and inclusion, and to create a more equitable playing field for minorities. In interviews with BoF, 14 current and former employees said things only got worse.
For fashion’s private market investors, deal-making may provide less-than-ideal returns and raise questions about the long-term value creation opportunities across parts of the fashion industry, reports The State of Fashion 2024.
A blockbuster public listing should clear the way for other brands to try their luck. That, plus LVMH results and what else to watch for in the coming week.
L Catterton, the private-equity firm with close ties to LVMH and Bernard Arnault that’s preparing to take Birkenstock public, has become an investment giant in the consumer-goods space, with stakes in companies selling everything from fashion to pet food to tacos.