Adidas Results hit by Reebok writedown
SummaryAdidas, the worlds second largest sports apparel firm, reported an unexpected loss in the fourth quarter, with results hit by writedowns linked to the weak performance of Reebok (Reuters 2013)
The group which normally competes with Nike and Puma in the highly competitive market for soccer gear and running shoes, on Thursday it made a fourth quarter operating a loss of 239 million euros with the prediction of 28.6 million euro profit (Reuters 2013)
It took goodwill impariment of 265 million euros at the pre-tax level to reflect lower growth, Last year Adidas cut it 2015 sale target for Reebok by a third (Reuters 2013)
Opinion
In my opinion i think ever since Adidas bought out Reebok in 2005, there over all image has gone down, because in Reebok was never one of the top competitors in the sporting good industry.
Adidas normally competes with huge sporting good company's like Nike and Puma, i think if Adidas bought out a company such as Nike and Puma they would not have had a loss and there sales would have increased, due to the fact that Puma and Nike are more well known brands and also i think it would have been a better career move
Feedback
1. Do you think Adidas made the right decision about buying out Reebok?
2. If Adidas bought out Nike or Puma do you think they would have better sales?
References
Reuters (March 07,2013) Adidas results hit by Reebok Writedown/ Chiagotribune.com
1. I think it's good that they bought out Reebok, this way they gained all the Reebok fans, which means more customers.
ReplyDelete2. They might have better sales as long as there wouldn't be any bigger changes, because people love Nike and Puma the way they are and might not be happy about any bigger changes; like in their logo or appearance of their clothes/shoes.
1. I believe it was not a good move for adidas to buy out reebok because reebok is not a very popular company to begin with and they could have spent their money in a better way that would bring them profit in the long run instead of losing money.
ReplyDelete2. I think if adidas bought either one of those companies they would have made more money and would have had a larger consumer base. Nike & Puma are very popular companies and with the purchase of either one it would have brought all their customers to Adidas.