Sportswear giant Adidas has confirmed that it is thinking about selling its Reebok brand. A final decision will be taken in March 2021.
“These strategic alternatives include both a potential sale of Reebok as well as Reebok remaining a part of the company,” Adidas said in a statement, adding that a decision will be announced in March.
Adidas acquired Reebok in 2005 for $3.8 billion with the goal of growing its sneaker and clothing revenue. In 2007, Reebok generated nearly a quarter of Adidas’s overall revenue, but in the first nine months of 2020, that was down to 6.9%.
Reebok sales slowed the following years, including a significant decline in 2012. In the year 2016, Adidas implemented a turnaround plan for Reebok called Muscle Up, which did result in profit two years later. However, the brand continued to struggle
Media reports in October suggested Reebok could fetch around $2 billion, or barely half of what Adidas paid for it 15 years ago.
Reebok reported $403 million in revenue for the most recent quarter ended September 30, a 7% decline from the same period last year.