Adidas Changed Coach Kasper Rorsted Is Confident

Adidas AG (ADSGn. DE), the world's second largest sporting goods manufacturer, today officially announced the appointment of Kasper Rorsted He is the new CEO, replacing Herbert Hainer, the current CEO who has been testing the patience of shareholders due to poor performance.

Kasper Rorsted, 53, is now a German daily chemical giant Henkel AG&Co. KGaA (HNKG_P.DE) CEO of Henkel Group. The group suddenly announced today Kasper Rorsted Has resigned and will leave on April 1. The Group has appointed Hans Van Bylen, the head of beauty care business Is the successor. Henkel AG&Co. KGaA (HNKG_p.DE) dropped sharply by up to 5.2% in the morning of Monday, while Adidas AG (ADSGn. DE) Up 12.3%, the biggest intraday increase in more than seven years.

Kasper Rorsted will join the board of directors of Adidas AG on August 1, and Herbert Hainer will step down on September 30, Kasper Rorsted officially took over the post on October 1.

Herbert Hainer is the longest serving CEO of Adidas AG and the member group of Germany DAX Index &Gambler Co. (NYSE: PG) P&G Group changed jobs to Adidas AG Adidas Group served as the sales director of Germany and was promoted to chairman of the board of directors and CEO in 2001. In 2014, both parties renewed the contract until March 2017, but the dissatisfaction of the board of directors and investors gradually accumulated. Herbert at the beginning of 2015 Hainer disclosed that the Group has started to look for a new CEO.

Adidas AG lacks sufficient Growth momentum , and industry leader Nike Inc. (NYSE: NKE) Nike Group is going further and further. In 2014, due to the weakness of the golf business and the North American market, two profit warnings were issued. Although the latest third quarter financial report showed that both businesses had recovered, this extremely important strategic market share in the United States was still under Armour Inc. (NYSE: UA) and Lululemon Athletica Inc. (NASDAQ: LULU) Such powerful local competitors have nibbled at Adidas Adidas' position as the second largest sports brand in the United States has also been dominated by Under Armour.

Investors have always hoped that Adidas AG will recruit new leaders from outside, so that it is more likely to take measures such as selling Reebok And golf brand and other non core businesses to improve profitability.

In addition to the performance, shareholders' dissatisfaction with Herbert Hainer also disappointed investors with the Reebok brand purchased with 3 billion euros in 2006. Although Reebok Reebok brand transformation fitness brand has achieved initial results. Analysts expect that the brand can achieve a break even in terms of operating profit in recent years, but it also failed to help the group maintain its market share in North America.

Kasper Rorsted, CEO of Henkel AG&Co. KGaA Henkel Group for the past 8 years Be regarded as the perfect candidate by analysts. Kasper Rorsted He successfully cut costs for the Group through restructuring, and he has made great contributions to the revival of North American business. Under his leadership, the annual revenue of the Group has increased by more than 1/3 in 8 years, and the operating profit margin has risen to a record high, Henkel AG &The share price of Co. KGaA (HNKG_P.DE) rose more than twice.

Ingo Speich, the fund manager of Union Investment, a private equity fund that holds about 1.2% of Adidas AG, said that he was grateful to Kasper The appointment of Rorsted is "a very, very good decision". He believes that Kasper Rorsted not only owns the consumer goods business and the technology industry (Compaq Compaq's professional experience is also a perfect combination of global vision and German speaking. Ingo Speich said he wanted Adidas AG This is the end of the days when Adidas Group's profitability was weak. Adidas AG in FY2014 Adidas The group's operating profit margin was only 6.1%, a sharp contraction of 210 basis points compared with the 2013 fiscal year, and only Nike Inc. Half of Nike Group.

According to data, in the last three quarters, thanks to the recovery of Taylor Made Golf golf business and North American business, Adidas AG Both sales and profit of Adidas Group grew strongly, and the Group raised its annual sales, gross profit margin and net profit expectations.

Igor Landau, Chairman of the Board of Supervisors of Adidas AG, made a statement to Herbert Hainer He expressed his gratitude for his contributions over the years and emphasized his achievements. He pointed out that during his tenure, the group's revenue doubled, the net profit and the number of employees tripled, and the group's market value has also risen from the original 3 billion euros to more than 18 billion euros now.