German sports products manufacturer Adidas has reached its (adjusted) 2014 profit forecast and has even managed a decent profit growth. On top of that, it has sold its American shoe brand Rockport to competitor New Balance.
"Reached 2014 earnings target"
CEO Herbert Hainer has proudly announced Adidas has hit its adjusted 2014 profit forecast of 650 million euro, even though its original target (830 - 930 million euro) has remained out of sight. The group had previously drastically reduced its profit forecast because of negative exchange rate fluctuations, weak golf sales and a difficult Russian market.
The sports group has now announced a 2014 turnover growth of nearly 6 % (at level exchange rates). In euro, turnover grew nearly 2 % to 14.8 billion euro, mainly thanks to Adidas (+ 11 % at level exchange rates) and Reebok (+ 5 %). Reebok has now managed a seventh straight quarterly turnover increase.
Rockport sold for 250 million euro
Adidas parted ways with its American brand Rockport, selling it to its competitor New Balance for 280 million dollars (250 million euro). To finance the deal, New Balance has joined forces with investor Berkshire Partners.
"Rockport is a brand that has performed well over the last years. However, our focus is clearly on sport", CEO Hainer said. The German sports giant has therefore decided to sell Rockport, a leather shoe brand launched in 1971 and purchased by Reebok in 1986, twenty years before Reebok itself was acquired by Adidas.