Adidas CEO Kasper Rorsted will remain at the helm.
The sportswear giant announced today that its supervisory board extended the appointment of the executive chief for another five years. His contract, which was set to expire on Aug. 1, 2021, will now end on July 31, 2026.
Rorsted has been a member of Adidas’ executive board since August 2016 and began serving as the CEO that October.
In a statement, chairman of the supervisory board Igor Landau wrote that the Adidas leader’s management prowess had come into particular focus during the coronavirus pandemic, which forced the closures of many of its brick-and-mortar units across the world and heavily impacted its bottom line.
“The outbreak of the corona pandemic posed major challenges even for a successful company such as Adidas,” explained Landau. “The management team under the leadership of Kasper Rorsted succeeded in steering Adidas and its employees healthily and safely through this unprecedented crisis. Continuity and strong leadership are important especially in these times, also in view of the new strategic cycle which will start in 2021.”
What’s more, Landau added that Rorsted has “driven the implementation of our long-term strategy, ‘Creating the New,’ with great energy and success. He clearly left his mark focusing the company on sustainable growth and increasing its profitability.”
The praise was echoed by Thomas Rabe, deputy chairman of the supervisory board, who will take over Landau’s role at the end of Adidas’ annual general meeting on Aug. 11. “We are convinced that under his leadership, the executive board will further advance Adidas’ development towards becoming the best sports company in the world,” he said.
Before Adidas, Rorsted served as CEO of consumer goods maker Henkel AG & Co. Prior to his appointment, Landau described Rorsted as “the perfect candidate.” He succeeded Herbert Hainer, who was with the athletic brand for 15 years.
Over the past few months, Adidas — like many other retail firms — has been grappling with the impact of the COVID-19 outbreak on its business: In early June, the company reported that sales in Greater China — its first major market “on the road to recovery” — turned positive in the month of May. It noted that the return to growth had happened earlier than expected, and it now anticipates second-quarter revenues in the region will match last year’s levels.
Adidas is set to report its Q2 financial results on Thursday. On April 27, when it reported first-quarter figures, the brand predicted a decline of at least 40% in second-quarter sales and a more than 100 million-euro (or $112 million) drop in its operating profits.