Reebok Flop Does Not Deter Adidas Ambitions

By Community | September 21, 2012

German sportswear maker Adidas has reiterated its 2015 targets as improved sales targets for the Adidas brand will compensate for its reduced expectations for its Reebok marque.

Adidas still expects global sales of EUR17bn ($22.1bn) and an operating margin of 11% by 2015. It raised its sales target for the Adidas brand from EUR12.2bn (£15.5bn) to EUR12.8bn ($16.35bn) but slashed its sales target for its struggling Reebok brand from EUR3bn ($3.9bn) to EUR2bn ($2.6bn).

At an investor event, advice Adidas confirmed the group’s long-term financial targets as outlined in its strategic business plan ‘Route 2015?.

“We have made great progress since we introduced our Route 2015 ambitions in November 2010. Everything I have seen over the past 20 months has only reinforced my confidence that Route 2015 will be an overwhelming success, drug ” said Chief Executive Herbert Hainer.

For 2012, healing Adidas expects 10% sales growth and 15 – 17% earnings per share (EPS) growth on an 8% increase to the operating margin. The company explained that its three key markets -North America, China, and Russia- were expected to comprise 50% of the expected growth.

On the other hand, sales targets for Reebok were slashed as the company looks to position it as a fitness brand and decided not to renew a licence with the National Football League in the US. Reebok can trace its lineage back to JF Foster of Bolton, the world’s first sports footwear firm.

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