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Adidas may sell Reebok

Miguel A. Rodriguez
Miguel A. Rodriguez
17 December 2020
Due to underperformance, Adidas oscillates between selling and keeping Reebok

Uncertainty looms over one of the most famous sport apparel brands – Reebok, as its mother-company Adidas can't decide between selling it and keeping it.

The German sportswear company announced that given the fact that it has started to develop its five-year strategy, and it is considering "strategic alternatives" for Reebok, including "both a potential sale of Reebok as well as Reebok remaining a part of the company."

Focusing on the US market, Reebok became part of the Adidas family in 2005, when the latter paid $3.8 billion. Initially, the company was bought so that Adidas could secure its presence in North America and compete side by side with Nike, considering that at that time, Reebok had deals with National Basketball Association (#NBA) and the National Football League (#NFL).

Over the years, Reebok's contribution to Adidas' overall sales dropped to 7% from an initial 20%.

Specialists believe that if Adidas decides to sell, Reebok will end up at VF Corp – the parent company of #Vans and The North face – which bought #Supreme for $2.1 billion. Other possible suitors could be Authentic Brands Group and Anta Sports.

Adidas will make an official announcement on March 10.

At the moment of writing, Adidas stock price is trading 1.53% higher.


This information/research prepared by Miguel A. Rodriguez does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. The research analyst primarily responsible for the content of this research report, in part or in whole, certifies that the views about the companies and their securities expressed in this report accurately reflect his/her personal views and consequently any person acting on it does so entirely at their own risk.The research provided does not constitute the views of KW Investments Ltd nor is it an invitation to invest with KW Investments Ltd. The research analyst also certifies that no part of his/her compensation was, is, or will be, directly, or indirectly, related to specific recommendations or views expressed in this report.The research analyst in not employed by KW Investments Ltd. You are encouraged to seek advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit that conforms to your specific investment objectives, financial situation, or particular financial needs before making a commitment to invest. The laws of the Republic of Seychelles shall govern any claim relating to or arising from the contents of the information/ research provided. 

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Miguel A. Rodriguez
Miguel A. Rodriguez
Financial Writer

Miguel worked for major financial institutions such as Banco Santander, and Banco Central-Hispano. He is a published author of currency trading books.