Focus On Brand Building, Adidas Intends To Sell Its Rockport

< p > the German sporting goods giant Adidas AG (ADS.DE) Adidas group is seeking to sell its American shoe brand Rockport.

< /p >

< p > sources said that Rockport sale is still in its initial stage. Adidas AG (ADS.DE) Adidas has hired GUGGenheim Partners LLC to find potential buyers of private equity funds and other shoe brands for Rockport.

Rockport's annual EBITDA (profit before interest tax depreciation and amortization) is between $3000-4000 and ten times the price of the company, and the price of Rockport may reach at least 300 million US dollars. The profit of the company is EBITDA.

< /p >

< p > Rockport, founded in 1971, was purchased by the US sports brand Reebok International Ltd. Reebok in 1986. In 2006, it was followed by Reebok International Ltd. Reebok, which was annexed by Adidas AG (ADS.DE) Adidas for about 4 billion US dollars, and became the brand of the Adidas (Adidas) Adidas group.

Up to now, Rockport has entered more than 55 markets worldwide.

< /p >

After P Rockport, Adidas AG (ADS.DE) Adidas group will be able to concentrate on developing flagship brand Adidas and catch up with the widening gap between Nike Inc. (NYSE:NIKE) Nike group, the world's largest sporting goods producer from the United States.

< /p >

< p > as the world's second largest sporting goods manufacturer, the slow pace of development of Adidas AG (ADS.DE) Adidas has been challenged by shareholders' distrust of management.

According to Reuters, Union Investment, the tenth largest shareholder holding Adidas AG (ADS.DE) 0.89% shares, appealed to shareholders to boycott group management on the eve of the 8 annual general meeting of Japan Group on Thursday, May.

Union Investment fund manager Ingo Speich criticized the Adidas AG (ADS.DE) Adidas not only when it failed to narrow the gap, but also shared its share of Germany's and European markets with its Nike Inc. (NYSE:NIKE) Nike on Sunday's Frankfurt report. So they have lost confidence in the group management and urged shareholders to refuse to support the management as usual.

Ingo Speich also opposes the "incomprehensible" decision of Adidas AG (ADS.DE) Adidas and CEO Herbert Hainer to renew the contract until March 2017.

< /p >

"P > Adidas AG (ADS.DE) Adidas spokeswoman for Ingo Speich said this is just a" side "view, the spokesman reiterated the group's 2013 financial year earnings record excellent performance.

< /p >

< p > the group achieved net profit of 790 million euros in the fiscal year ended December 31, 2013, a sharp increase of 50.7% over the 524 million euros in fiscal year 2012, and the diluted earnings per share rose 49.3% to 3.76 euros from 2.52 euros.

However, due to the adverse floating of the exchange rate, year-on-year sales fell by 2.6% to 14 billion 492 million euros, including 6.8% in Western Europe and 2.7% in European emerging markets.

The operating profit margin rose to 8.3%. It is estimated that the operating profit margin in the 2014 fiscal year will be between 8.5-9.0%, which is far from the target of 11% of the operating profit in 2015.

< /p >

< p > group warned that sales in the current 2014 fiscal year will be hit hard by exchange rate weakness in emerging markets such as Russia and Argentina. Even if the Brazil world cup is difficult to offset, the goal of selling Euro 17 billion in 2015 may not be achieved.

< /p >