Adidas Slashes Reebok Forecast

Adidas AG offered a mixed forecast at an investor presentation held on Thursday and Friday at the TaylorMade Adidas Golf headquarters in Carlsbad, Calif.

While company executives said its Route 2015 business plan was on track and it increased its 2015 sales forecast for the Adidas brand, projections for Reebok were severely trimmed.

The company now expects 2015 sales for Reebok to be about $2.6 billion, or 2 billion euros, approximately a third lower than expected. The decline, executives said, is due to the company’s decision not to renew a license agreement with the NFL, a change to the way it reports sales of NHL related products, and a refocus on margins and operational efficiencies.

Matt O’Toole, chief marketing officer for the brand, said the company would continue to position Reebok as a fitness brand. “Our razor sharp focus on fitness will allow us to capture the hearts and minds of all fitness enthusiasts worldwide,” he said in a statement. “Our new category structure will bring more focus and a deeper product offering, and will provide better commercial opportunities as we turn the corner into 2013.”

For the Adidas brand, the company now expects 2015 sales of $16.6 billion, or 12.8 billion euros, a 5 percent increase over previous projections.

“We have made great progress since we introduced our Route 2015 ambitions in November 2010,” Adidas Group CEO Herbert Hainer said in a statement. “Everything I have seen over the past 20 months has only reinforced my confidence that Route 2015 will be an overwhelming success. While the first two years of our execution were marked by exceptional sales momentum, we will now focus and deliver even stronger on improving the profitability of our group.”

The company said that for 2012, Adidas Group expects sales to increase nearly 10 percent over 2011, with earnings per share to grow by 15 percent to 17 percent.

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