By Ellen Emmerentze Jervell
HERZOGENAURACH, Germany--Adidas AG (ADS.XE) presented its new
strategy Thursday and said it expects net profit to rise 15% a year
until 2020.
The world's No. 2 sporting goods company said the strategy is
based on three elements-speed, growth in major cities, and
investment in its core brands. It expects to outperform the
sporting goods industry with group sales growing at a
"high-single-digit rate" for each of the next five years.
"We will accelerate our growth story and deliver superior
returns to our shareholders," Chief Executive Herbert Hainer
said.
Adidas said it would reduce its production lead times. It also
plans to expand its e-commerce business to above 2 billion euros
($2.19 billion) by 2020.
Adidas plans to "over-proportionally" invest in talent and
marketing in metropolitan areas around the world. Its key focus
will be on six cities: Los Angeles, New York, London, Paris,
Shanghai and Tokyo.
"If we win running in New York and Los Angeles, we will win
running in the U.S.," Roland Auschel, Head of Adidas's global sales
said.
The Adidas stock price has climbed steadily ahead of the new
strategy launch, closing at EUR70.43 Wednesday.
In 2010, Adidas released its last five-year strategy,
anticipating sales growth of more than 45% to EUR17 billion. The
company last year admitted it would not be able to meet these
targets.
Earlier this month, the company reported 2014 net profit of
EUR490 million, down from EUR787 million the year before, on sales
worth EUR14.5 billion.
-Write to Ellen Emmerentze Jervell at ellen.jervell@wsj.com
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