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 Chief Executive Officer Herbert Hainer said he's exploring the sportswear maker's portfolio to establish which units fit with long-term plans, as his strategy comes under the spotlight by shareholders known as agitators for change.
The company is looking at all its businesses, Hainer said at a meeting with reporters at the company’s Herzogenaurach, Germany headquarters Tuesday. The CCM ice-hockey unit has attracted interested parties, though no active sale process is underway, he said.
The Reebok owner’s strategic direction was already the subject of debate when Egyptian billionaire Nassef Sawiris became its biggest shareholder in October. Like fellow investor Southeastern Asset Management Inc., Sawiris is known for actively pushing for change at some companies he holds stakes in. Adidas is maintaining a dialogue with investors, said Hainer, 61, as he seeks to effect a turnaround during his final stretch as CEO.
“We want them to be happy with our plans so they buy and hold the stock,” Hainer said, adding that he speaks two or three times a year with investors including Southeastern, Groupe Bruxelles Lambert SA and BlackRock Inc. “I’ve never spoken with Mr. Sawiris,” partly because of coordinating schedules. Of course we’re going to talk with him.”
ADVERTISEMENT
As recruiter Egon Zehnder leads a search for his successor, Hainer vowed again to stay with the company until his contract ends in March 2017.
Southeastern, which holds about 3 percent of the shares, has said an external candidate would be best placed to help the German company in its market-share battle with Nike Inc. Should that happen, Hainer said he didn’t expect either of the two main internal candidates — board members Erik Liedtke and Roland Auschel — to leave.
Adidas is rebounding from a dismal 2014, during which sales stagnated, the shares tumbled 38 percent, and it scrapped its 2015 financial targets. The company raised its full-year revenue and profit targets Nov. 5 while reporting third-quarter profit that beat analysts’ estimates.
Having sold the Rockport walking shoe business, Adidas is now seeking a buyer for its struggling golf unit, while the CCM hockey unit is also a possible divestment candidate.
Reebok, considered by analysts and investors as an unsuccessful acquisition by Hainer, fits in with fitness trends that will evolve in the next 10 to 20 years, the CEO said.
By Aaron Ricadela; editors: Matthew Boyle, Thomas Mulier.
From analysis of the global fashion and beauty industries to career and personal advice, BoF’s founder and CEO, Imran Amed, will be answering your questions on Sunday, February 18, 2024 during London Fashion Week.
The State of Fashion 2024 breaks down the 10 themes that will define the industry in the year ahead.
Imran Amed reviews the most important fashion stories of the year and shares his predictions on what this means for the industry in 2024.
After three days of inspiring talks, guests closed out BoF’s gathering for big thinkers with a black tie gala followed by an intimate performance from Rita Ora — guest starring Billy Porter.