Weak Performance Appease Shareholders Adidas Announces 1 Billion 500 Million Euro Stock Buyback Plan

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After the extreme weakness caused shareholders' dissatisfaction, in order to placate shareholders, Adidas AG (ADSG.DE) Adidas group announced the 1 billion 500 million euro return plan for the next 3 years, and the main 100 million share repurchase form was reflected. Meanwhile, the group said it would continue to issue its annual net profit 20%-40%.

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Adidas AG, chief financial officer of Adidas group Robin Stalker, said it would buy back 20921618 shares of common stock by the end of May 7, 2019, and the repurchase price would be less than 10% of the market price. The buyback plan will be officially launched in the fourth quarter of 2014.

By the end of July,

The biggest sporting goods manufacturer, Adidas AG, Adidas group, issued a third profit warning in a year, saying its net profit will decline to 650 million euros in the current fiscal year. The previous forecast is 8.3-9.3 billion euros, while net profit in fiscal 2013 is 787 million euros, and annual sales growth has dropped from high single digit to medium to high single digit.

At the beginning of August, Adidas AG, Adidas group released interim results, saying that the net profit in the two quarter ended June 30, 2014 was 145 million euros, worse than analysts' expectations of 150 million euros, down 15.2% from 1.71 dollars a year earlier, and 0.69 euros per share, down 16% from 0.82 euros a year earlier.

The weak performance was very dissatisfied with shareholders. In September, the German media quoted the news that a large number of large hedge funds were interested in joining Adidas AG, Adidas group. The news also caused the stock price of the second largest sporting goods manufacturers to rise by 4.6% on that day, the biggest increase in 10 months in 2013.

It is reported that The Children 's Investment Fund Management UK LLP, Knight Vinke Asset Vinke and s three will be forced to step down as the chief executive of Adidas, and seek to break up the Reebok brand and golf business of the group.

But Bloomberg quoted insiders as saying that Knight Vinke Asset Management LLC did not participate in the negotiations on Adidas AG Adidas, while Adidas AG Adidas spokesman Katja Schreiber responded to the group's "continuing constructive dialogue with investors".

In addition, it is reported that Herbert Hainer has also been under the pressure of the existing shareholders of the group.

The big shareholders criticized the performance of Herbert Hainer at the meeting with representatives of Adidas AG Adidas. They believe that Herbert Hainer should respond faster when facing the decline of the North American TaylorMade golf business, which is quite different from their support for Herbert Hainer in March this year from two years to March 2017.

In addition to the TaylorMade golf business, the group bought the Reebok Reebok brand in 2006 for 3 billion euros, which also disappointed investors.

Although Reebok Reebok brand pformation fitness brand has achieved initial success, analysts expect the brand to break even at the operating profit level in recent years, but it has failed to help the group retain its market share in North America. Adidas AG Adidas not only lagged behind Nike Inc. (NYSE:NIKE) Nike group, but also surpassed Under Armour Inc. (NYSE:UA) to third place in the US sports brand.