- Adidas AG ADDYY is trying to "double down" its foothold in the U.S. sports market by opening more stores and forging new partnerships with athletes.
- The Germany-based sportswear brand has recently spent "hundreds of millions of dollars" on a newly-opened facility in Los Angeles, where it will base its basketball product team, the Wall Street Journal reported, citing an interview with Rupert Campbell, the company's North America president.
- After facing the failure of some of its most high-profile celebrity ventures, Adidas is now considering sports as its new priority for the U.S. business, focusing on basketball.
- The heightened focus on basketball and soccer in the U.S. comes as the company's new Chief Executive Officer Bjorn Gulden (a former professional soccer player) seeks to play for the company, the report noted.
- Adidas has also recently renewed a longtime collaboration with Major League Soccer in the U.S.
- Related: Adidas Severs Ties With Kanye West Over Rapper's Antisemitic Remarks, Sees $247M Impact From Development In 2022
- The company has suffered setbacks in Russia and China recently. Adidas reported a 1% decline in currency-neutral revenues for fourth-quarter FY22.
- The decrease in revenue was due to an impact of about €600 million caused by the termination of the Yeezy partnership at the end of October 2022.
- Based on the challenges, the company's underlying operating profit is projected to be around the break-even level in 2023.
- "While Adidas will continue to work with celebrity partners, sports is now front and center for the company's U.S. business," the report read.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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