Adidas optimistic despite €265 million Reebok writ - footwearbiz: Lead

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Adidas optimistic despite €265 million Reebok writedown

11/03/2013
Adidas made a €265 million writedown last year for Reebok, the brand it bought for $3.8 billion in 2005 to help it compete with Nike.

Fraud was uncovered at Reebok’s India unit, and it lost a lucrative contract to supply American football apparel, thought to be worth $200 million a year.

The writedown was linked to a weak performance in the US and Latin America, and pushed adidas to a fourth quarter loss. Operating profit for the year declined 3% to €920 million.

Despite this, adidas’ chief executive Herbert Hainer is confident about this year.

For 2013, he expects sales to increase at a mid-single digit from 2012's record level of €14.9 billion, though with a slower start to the year.

Adidas is the market leader in the football sector and will start to build marketing activities from the middle of the year ahead of the 2014 World Cup in Brazil.


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