display
Herzogenaurach (dpa) - Sustainably produced shoes, comfortable clothes and a focus on the target group of women: The world's second largest sporting goods manufacturer Adidas has already left the corona crisis behind and wants to grow massively in the next five years.
In the five years from 2021 to 2025, profits should increase by 16 to 18 percent, announced CEO Kasper Rorsted on Wednesday at the presentation of the medium-term corporate goals.
In terms of sales, growth of 8 to 10 percent per year is targeted over the same period.
"The sporting goods industry will grow by 100 billion euros by 2025," said Rorsted with a view to the entire market.
The sports market is growing twice as fast as the total economic output.
China will be the largest growth market.
In order to at least maintain its position vis-à-vis world market leader Nike and other competitors, Adidas has created its own slogan as a motto for the next few years: "Own The Game" (for example: "Determine the game").
"We want to gain market share," said Rorsted.
display
"More and more people are doing sports and staying active," said Adidas brand director Brian Grevy.
“We're seeing a huge demand for casual wear.
And that won't go away. "
Adidas wants to pay special attention to the topic of sustainability.
Nine out of ten items should be sustainable in terms of material and production over the next five years, said Rorsted.
«Sustainability has been an integral part of Adidas' corporate philosophy for more than two decades.
It is a direct expression of the company's mission to be able to change lives through sport, ”he said.
The products are to be manufactured to a larger extent either from recycled materials or processed in a circular-economy manner.
In 2024, the company plans to use only recycled polyester in its products.
In addition, the group wants to concentrate more than before on the core target groups - football, running, training, outdoor and sporty casual wear.
Rorsted believes that 95 percent of future sales growth could come from these buyers.
In addition, women are to be emphasized more as a target group.
display
The Franks want to invest more in their brand, but above all in digitization.
One billion euros is expected to flow into improving online business by 2025.
Thanks to the corona pandemic, online retail was already the clear growth driver last year - at times 70 percent of stationary shops worldwide were closed due to lockdowns.
In the meantime, 95 percent are open again.
The share of sales from direct customer business is to increase to around 50 percent by 2025 and represent over 80 percent of the increase in sales by 2025.
"You have to be where the consumer is," said Rorsted.
"And the consumer is mobile and digital."
For the coming year, the management around CEO Rorsted calculates the bottom line with a profit of 1.25 to 1.45 billion euros in the continued business.
The forecast no longer includes the US subsidiary Reebok, which is to be sold and will be classified as a discontinued operation from the first quarter.
Costs in connection with the planned sale are likely to depress profits from continuing operations by around 200 million euros.
“It's the right time,” said Chief Financial Officer Harm Ohlmeyer.
But he also spoke of a “tricky process” that the sale means.
Reebok was "slightly positive" in 2020.
In 2020, sales and profits fell sharply in connection with the Corona crisis.
Sales fell by 16 percent to 19.8 billion euros, and profit from continuing operations even fell by almost 78 percent to 429 million euros.
For comparison: The local rival Puma, number three in the industry worldwide, had to accept significantly fewer losses last year with a sales decline of 1.4 percent (adjusted for currency effects) - but has also formulated more modest goals for the future.
display
© dpa-infocom, dpa: 210310-99-768134 / 3
Adidas strategy website