BERLIN— Adidas AG Monday said it was reviewing the future of Reebok and might sell the U.S. fitness brand—a business it had spent years trying to revamp and that could now fetch several billion dollars, according to analysts.
Adidas said a sale was one of the options it was considering as part of a five-year strategy plan it is set to present March 10, 2021. It may also decide to keep the business, the German sports retail group said.
Adidas, the world’s second-largest sportswear maker after Nike Inc., bought Reebok in 2006 for roughly €3 billion, equivalent to $3.6 billion, as part of a bid to expand in the U.S. and challenge its bigger rival on its home turf. Reebok at the time was a sponsor of the National Basketball Association. But the plan has disappointed, analysts say.
Adidas managed to improve the Reebok business but sales have lagged behind those of Adidas itself and dragged down the group’s profits. In 2016, Adidas Chief Executive Kasper Rorsted launched a turnaround plan for Reebok shortly after taking on the job. He cut costs by closing down dozens of Reebok stores in the U.S. and aimed to make the unit’s management more independent from Adidas.
Mr. Rorsted repeatedly opposed calls from some shareholders to ditch Reebok, arguing that the revamp, not a sale, was the answer.
