Hoping to generate more revenue, Adidas has appointed a new management team, both for Europe and the United States. The German brand is looking to increase revenue in order to compete again with its eternal rival Nike.
Turnover: Nike increases while Adidas loses
Adidas had to suffer an 11 % turnover decrease in the second quarter in Western Europe, while North America dropped 2 %. Nike however saw its turnover increase in its first quarter, 8 % in Western Europe and 9 % in North America. Adidas had already sent out a profit warning last month, due to problematic exchange rates, lower golf sales and German distribution issues.
Adidas’ US management will be merged with Reebok’s into Adidas Group North America, led by Patrik Nillson, who is already at the head of Adidas North America. Reebok’s CEO, Uli Becker, will be leaving the company. “This new set-up will make our group stronger and grow our business faster in the U.S.", CEO Herbert Hainer stated.
The European department will also be brought back into one group as all Western European countries will be considered to be one large region. “Consumer behaviour is changing fast in Europe: country borders are becoming less relevant for our consumers and customers”, Hainer said. Gil Steyaert, currently managing director of the North region, will become the new leader of the Western European structure.
(Translated by Gary Peeters)