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    Adidas Adidas Heavily Hired New CEO

    2015/2/25 20:24:00 60

    AdidasAdidasCEO

    Market sources say that the board of directors of Adidas AG (ADS.DE) Adidas group has officially sought a new CEO to replace the current chief executive, Herbert Hainer.

    In September last year, German Manager Magazin manager reported the news, and Herbert Hainer finally released an open letter to the staff to confirm the news in the new year.

    Stimulated by news on Thursday Adidas AG (ADS.DE)

    DDAs set

    The opening of the group's share price rose nearly 4%, and the 9:50AM increased by 3.67% at the time of the U.S. press ed. 67.03.

    Adidas AG Adidas lacks enough growth power in recent years, and industry leader Nike Inc. (NYSE:NikE)

    Nike

    The group is drawing farther and farther away.

    In mid 2014, due to the weakness of golf business and North American market, Adidas AG Adidas issued a profit warning, resulting in its stock price plunging by 15% on a single day, the largest single day decline in 17 years.

    Poor performance is the main reason for the loss of patience of the board of directors of the German sports brand group to Herbert Hainer. 2 months after the announcement of earnings warning by Adidas AG Adidas, there was a rumour that the board was unhappy with Herbert Hainer.

    Since 2001, Herbert Hainer, the Adidas AG Adidas CEO, is the longest serving CEO of the group. Despite the dissatisfaction of the board, Herbert Hainer still renewed its contract with the company last year until 2017.

    According to Herbert Hainer's open letter, the new CEO promotion and external appointment are all possible.

    It is said that Eric Liedtke and Roland Auschel, the group's global brand leader, are the most competitive candidates for new CEO.

    Ingo Speich, a private equity fund manager who holds 0.9% of Adidas AG Adidas group, said that the faster the CEO handover would be, the better the group's Union Investment fund manager would be.

    {page_break}

    Shareholders dissatisfied with Herbert Hainer in addition to their performance, the Reebok Reebok brand, which was purchased in 2006 for 3 billion euros, also disappointed investors.

    Despite the initial success of the Reebok Reebok brand pformation fitness brand, 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.

    To this end, there is news that even private equity funds to drive away Herbert Hainer threatened to buy Adidas AG Adidas group.

    "Manager Magazin manager" reported that The Children 's Investment Fund Management UK LLP, Knight Knight, and the three funds sought to acquire Adidas group. After joining the stock market, they will be forced to step down and seek to break up the group's Reebok brand and golf business.

      

    Herbert Hainer

    In an open letter to employees, it also said that the group had a very good start in 2015 and has the ambition to become the best sports brand group in the world.

    According to the data, as of the end of September 2014, in the three quarter of fiscal year 2014, Adidas AG, Adidas Group recorded a net profit of 282 million euros, although it was 10.8% lower than the same period last year, but it was higher than the average expected 268 million 400 thousand euros after the market downturn.

    Operating profit fell by 13% to 405 million euros per year, which is also higher than the market forecast of 399 million euros.

    Total sales in the North American market, excluding the strong global performance, grew 6.2% to 4 billion 118 million euros, and the market forecasts 4 billion euros.

    North American market sales recorded a 1.4% decline, while Latin America increased by 15.8% annually, while Western Europe and Eastern Europe increased by 10% and 19% respectively.

    The Group expects net sales to grow by a median figure in 2015 fiscal year, while net profit growth will be higher than sales growth; meanwhile, it reiterates the previous full year downside forecast: net profit of 650 million euros, after 8.3-9.3 billion euros, and 787 million euros in fiscal year 2013, sales in medium to high single digit growth, previously expected to be a high digits, and operating profit margin of 6.5%-7.0%, previously expected to be 8.5%-9.0%.

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