German sportswear brand Adidas CEO Kasper Rorsted has expressed his hope that a restructuring plan would restore struggling Reebok to profitability during the annual meeting after shareholders asked how much more time the company would give the brand.
“We are not going to sell Reebok because we are still very confident of the strategic position of the brand. We are convinced the measures we are taking are going to be successful,” said Rorsted.
It may be mentioned here that sportswear giant Adidas purchased Reebok in 2006 and has been trying to establish it as a fitness brand ever since. However, the transition has not been smooth.
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Kasper, who assumed Adidas CEO position in October last year, has been putting pressure on the US subsidiary of Reebok to strengthen its position in the market.
Adidas reported a rebound at Reebok in the first quarter with a 13 per cent increase in sales, but said it did not expect it to keep up that pace for the full year as the period had been helped by early product launches and new stores.
