“The sizable multiyear buyback program announced today shows the confidence in our strategy Creating the New,” said Harm Ohlmeyer, chief financial officers. “We will continue to relentlessly drive operating cash flow, while at the same time investing back into our company to provide for future growth. The buyback complements our stated dividend policy, underscoring our commitment to continuous shareholder return.”
Adidas AG said on Tuesday it plans to buy back up to 3 billion euros of its shares by May 11, 2021.
Starting on March 22, the German sporting-goods firm intends to buy back shares worth up to 1 billion euros in 2018. Adidas, which reports fourth-quarter results on Wednesday, said it will cancel the majority of the repurchased shares.
The maker of Stan Smith and Superstar sneakers plans to finance most of the share buyback from its net cash pile, with operating cash flow generation seen remaining strong in the years ahead. It will also take advantage of low interest rates to finance part of the buyback through debt.
This comes in addition to its stated policy of paying an annual dividend to shareholders in the range of 30 to 50 percent of net income from continuing operations.