Adds background BERLIN, Dec 14 (Reuters) - German sportswea
Adds background
BERLIN, Dec 14 (Reuters) – German sportswear maker Adidas AG ADSGn.DE stated on Monday it was assessing strategic choices, together with a possible sale, for Reebok, 15 years after it purchased the U.S.-focused model to tackle arch rival Nike NKE.N on its dwelling turf.
The choice can be introduced on March 10, when it formally presents its new technique, Adidas stated.
“These strategic options embody each a possible sale of Reebok in addition to Reebok remaining part of the corporate,” the corporate stated in a press release.
Adidas purchased Boston-based Reebok for $3.eight billion in 2005, however a scarcity of progress in turning it round led to repeated calls from buyers to eliminate the model.
In 2019, Adidas wrote down Reebok’s e-book worth by practically half, in contrast with 2018, to 842 million euros ($1.02 billion). The unit’s gross sales fell 44% within the second quarter of 2020 to 228 million euros, resulting in its mother or father taking impairment costs within the interval.
Adidas stated earlier in November that it was anticipating a drop in general gross sales for the final three months of the 12 months because the reimposition of lockdowns in Europe would doubtless offset a return to progress in China and robust demand for operating gear and merchandise designed by singer Beyonce.
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(Reporting by Thomas Seythal and Shradha Singh; enhancing by Kirsti Knolle and Anil D’Silva)
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