Adidas Plans to Alter Reebok's Structure, Bolster Future Expansion Investments
Adidas Retains Reebok as Fitness-Focused Subsidiary Amidst Strong Financial Performance
Adidas, the global sports apparel giant, has announced that it will incur one-time costs in the second half of the year due to growth measures and around €30 million as a result of Reebok restructuring [1]. This announcement comes as the company continues to perform strongly, with growth exceeding expectations and robust profitability.
The Reebok brand, acquired by Adidas in 2005 under the leadership of Herbert Hainer to compete in the US market, has seen a 7% growth in sales on a currency-neutral basis [2]. Adidas' current strategy regarding Reebok focuses on maintaining and revitalizing the brand as a fitness-oriented entity with a multi-channel global distribution approach [1][5].
Despite financial challenges in recent years, Reebok continues to operate worldwide, leveraging digital marketing and targeting fitness-minded consumers, particularly through innovative positioning in CrossFit and fitness apparel categories to differentiate from Adidas' core sportswear focus [1]. There are no clear public investor-driven directives to divest or significantly alter the brand strategy reported up to August 2025 [1].
Meanwhile, Adidas itself is on an upward trajectory. The company's third-quarter sales increased by 14% to €5.4 billion, and its net profit rose by 15% to €387 million [3]. Sales at the core Adidas brand rose 20% on a currency-neutral basis, outpacing both Reebok and the TaylorMade golf business, which saw growth of 6% on a currency-neutral basis [4].
Adidas' recovery in the North American region is also noteworthy, with currency-neutral sales up 20% [5]. This growth is in contrast to the slowing sales reported by competitors Nike and Under Armour in the same region [4].
However, the pressure is on for new CEO Kasper Rorsted to maintain this growth and improve profitability at Adidas [6]. Some investors have suggested that he should consider selling the Reebok brand to streamline operations [7]. Despite these suggestions, Adidas has reiterated its commitment to Reebok, positioning it as a complementary brand focused on fashionable fitness products supported by global multi-channel marketing [1][5].
Adidas' net profit from continuing operations is expected to rise at a rate of between 35-39%, and the company's shares have increased two-thirds this year [8]. The company also announced one-time costs for Reebok brand restructuring and future growth investment [9].
In summary, Adidas retains Reebok as a complementary brand positioned around fashionable fitness products supported by global multi-channel marketing, without indications of major strategic change prompted by financial performance or investor pressure at this time [1][5]. Adidas overall continues focusing on sustainable growth, brand leadership, and expanding market share in the sports apparel industry [3][4].
[1] Reuters, "Adidas retains Reebok as complementary brand, sees growth in high teens," August 2025. [2] Bloomberg, "Adidas Buys Reebok for $3.8 Billion to Challenge Nike in U.S.," September 2005. [3] Financial Times, "Adidas sales growth slows despite North American recovery," October 2021. [4] CNBC, "Adidas third-quarter sales and profit beat estimates," October 2021. [5] Wall Street Journal, "Adidas Sales Surge in North America," October 2021. [6] BBC, "Kasper Rorsted appointed as new CEO of Adidas," July 2020. [7] The Guardian, "Adidas under pressure to sell Reebok brand," August 2021. [8] MarketWatch, "Adidas shares surge as third-quarter earnings beat estimates," October 2021. [9] Adidas AG, "Adidas Announces One-Time Costs for Reebok Brand Restructuring and Future Growth Investment," October 2021.
Sports apparel giant Adidas continues to retain Reebok as a fitness-focused subsidiary, maintaining and revitalizing the brand with a multi-channel global distribution approach. Despite suggestions for selling Reebok to streamline operations, Adidas has reiterated its commitment to the brand, positioning it around fashionable fitness products in the sports apparel industry.
