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| Adidas replaces Reebok head |
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| Thursday, 06 March 2008 | |
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Sporting giant Adidas announced it will replace its top Reebok International executive as the footwear brand struggles in its key U.S. and U.K.
markets. Reebok chief marketing officer Uli Becker, who joined Adidas in 1990 and moved to Reebok just under two years ago, will replace Paul Harrington as Reebok's president and CEO on April 1.
Harrington was named Reebok's CEO two years ago and is a 12-year employee. Adidas said Harrington "decided to resign from his post," and, in a separate announcement yesterday, Van Nuys, Calif.-based Easton-Bell Sports Inc. said he would become the helmet and sports equipment maker's new chief executive. Adidas reported a 63 percent jump in fourth-quarter profit to $32 million this week, citing cost synergies from combining Adidas' and Reebok's sourcing. But while Adidas' fourth-quarter sales rose 20 percent to $2.5 billion, Reebok sales declined 12 percent to $865 million, and Adidas chief executive Herbert Hainer said Reebok's U.S. sales likely will continue dropping for six to nine months. Reebok's total sales for 2007 fell 6 percent to $3.5 billion. Adidas originally forecast a Reebok turnaround for the fourth quarter of 2006. |