Adidas to Focus on E-Commerce, Direct Sales and Sustainability in New Strategy
March 10 2021 - 6:29AM
Dow Jones News
By Joshua Kirby
Adidas AG on Wednesday set out its latest midterm strategy,
including growth in e-commerce and direct-to-consumer sales and a
focus on sustainability in its products and production
processes.
The German sporting-goods company is targeting average annual
revenue growth of 8%-10% at constant currencies between 2021 and
2025. This will be driven by a doubling of e-commerce sales to 8
billion-9 billion euros ($9.52 billion-$10.71 billion), while the
direct-to-consumer business should grow to account for more than
half of total sales by 2025, the company said.
Adidas is targeting an operating margin of between 12% and 14%
and annual income growth of 16%-18% on average. The company expects
to return a total amount of EUR8 billion-EUR9 billion via dividend
payouts and share buybacks.
The company is also focusing on sustainability, with a target of
nine out of 10 products made from sustainable materials by 2025. A
15% reduction in the carbon footprint is targeted, and Adidas aims
to become climate-neutral in its own operations by 2025 through
lower use of materials and energy, and greater use of
renewable-energy sources.
Write to Joshua Kirby at joshua.kirby@dowjones.com;
@joshualeokirby
(END) Dow Jones Newswires
March 10, 2021 06:14 ET (11:14 GMT)
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