By
DPA
Translated by
Barbara Santamaria
Published
Jul 7, 2017
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Adidas CEO delivers an ultimatum to struggling Reebok brand

By
DPA
Translated by
Barbara Santamaria
Published
Jul 7, 2017

In an interview with German magazine Focus, Adidas CEO Kasper Rorsted has given struggling US fitness brand Reebok an ultimatum: the company must return to profitability within four years.

Reebok


“We have developed a turnaround plan for the next four years, which clearly indicates where Reebok is going. What’s clear is that Reebok must be profitable and contribute to the success of the company.”

Last year, Reebok’s chief announced plans to downsize the struggling unit to ensure its profitability. The changes included 150 job cuts at the company’s US headquarters in Boston and the closure of approximately half of its outlets and stores in North America. In the first quarter, Reebok reported a sales increase of 13%. But there is still a lot to be done in the reorganisation of the brand, said Rorsted at a conference.

In the Focus interview, the CEO also announced a major digital push at Adidas. He named an initiative to offer personalised shoes as an example. “Customers will be able to order them in the future according to their wishes and requirements, an after a short time pick them up at a store or have them delivered.”

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