By Natalia Drozdiak
FRANKFURT-- Adidas AG said Thursday it had begun a search to
replace longtime Chief Executive Herbert Hainer, who has led the
company through years of success but recently struggled to meet
profit targets, sparking investor pressure for change at the
top.
Mr. Hainer has presided over the world's No. 2 sportswear maker,
behind Nike Inc., since 2001. His contract was extended last year
until March 2017, and the company at the time said the move was to
allow time to find a successor.
But Thursday's announcement about the CEO search, contained in a
letter to employees, was the first time the company had provided
detail about the search.
In late morning trading, Adidas shares were up 6.2%.
Over the past year, Adidas has been hit by headwinds, including
disappointing sales at its golf unit, and in its two biggest
markets: the U.S. and Russia. Shares fell roughly 40% last year
following three profit warnings in 10 months. Though shares have
recovered somewhat this year, big shareholders have been pressuring
Adidas for management changes.
In the letter to employees, Mr. Hainer said Adidas will present
a five-year strategic plan in March. The presentation has been
scheduled since last year. He also said the company was looking at
internal and external candidates to replace him.
Mr. Hainer said in the letter the company has had a successful
start to the year after efforts in recent weeks and months to
strengthen the brand and realign the company.
Adidas last month sold its Rockport unit for $280 million to a
new entity formed by Berkshire Partners and New Balance, in a
planned move that allows Adidas to focus more on sporting goods.
The company also said it met a reduced profit target for last year
of roughly $650 million.
Adidas has also shuffled managers and announced a new push in
the U.S. over recent months.
"I am very conscious that all these changes weren't always easy
and weren't always fun to implement, also because a lot of external
criticism was brought on the company," Mr. Hainer said.
Write to Natalia Drozdiak at natalia.drozdiak@wsj.com
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