Back in October, rumors began to circulate regarding a potential sale of Reebok by adidas. This week adidas has come out to confirm reports, revealing it may in fact be selling the athletic brand.
According to WWD, adidas will announce a decision concerning the future of Reebok when the company shares its new strategy presentation on March 10, 2021. The German sportswear brand is currently discussing alternatives for Reebok, which could include a sale to Authentic Brands Group.
ABG’s CEO Jamie Salter has made his interest in the American footwear and clothing company well known, while ABG partner and former Reebok athlete Shaquille O’Neal has previously said he would love to buy the brand.
WWD points out that adidas may choose to keep Reebok, a brand it acquired for $3.8 billion in 2006. After a significant down period, adidas implemented a plan to get the brand back on track in 2016, leading Reebok to profitability in 2018, two years earlier than expected. Reebok then experienced a two percent sales growth in 2019, before being hit hard by the pandemic in 2020. The brand’s revenues were down seven percent in the third quarter of this year and 20 percent total in the first nine months of 2020.
This is all we have on adidas’ potential sale of Reebok for now, but be sure to check back with us for more.
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