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German sportswear major Adidas group today lowered its 2015 sales target for its struggling brand Reebok to 2 billion euro from 3 billion euro.
Following the strategic decision not to renew the previous NFL (National Football League) licence and a change in reporting of National Hockey League related licence sales and the Group’s focus on margin and operational efficiency, Reebok’s 2015 sales target is now reduced to 2 billion euro from 3 billion euro, Adidas said in a statement.
“Our razor-sharp focus on fitness will allow us to capture the hearts and minds of all fitness enthusiasts worldwide. Our new category structure will bring more focus and a deeper product offering and will provide better commercial opportunities as we turn the corner into 2013,” Reebok Chief Marketing Officer Matt O’Toole said.
Nevertheless, the Adidas Group aims to achieve global sales of 17 billion euro and a sustainable operating margin of 11 per cent by 2015, the statement said.
The Adidas brand will continue to be the engine of the Adidas Group with projected 2015 sales of 12.8 billion euro, a 5 per cent increase from the original target of 12.2 billion euro announced in November, 2010, it said.
The Adidas Group will continue to position Reebok as the fitness brand that caters to all major fitness categories, whether it is group activities such as Cross Fit, fitness running, gym, yoga or dance.
Going forward, the global marketing organisation of Reebok will be organised in business units that build products and concepts for these respective fitness categories and for Classics.
Meanwhile, Adidas had said in May this year it had uncovered commercial irregularities to the tune of 125 million euro in its subsidiary Reebok India and announced plans to close one-third of around 900 Reebok stores as part of a restructuring strategy.
Last Wednesday, Reebok India’s sacked Managing Director Subhinder Singh Prem and former Chief Operating Officer Vishnu Bhagat were arrested along with three others for their alleged involvement in an Rs 870 crore fraud in the company.
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