NEW YORK — Adidas plans to name an executive to work with North America president and chief executive officer Erich Stamminger in a top management position in the U.S., global ceo Herbert Hainer told analysts at an investor meeting in Germany last week.
Adding a key executive in the U.S. is another signal that the company is concentrated on aggressively building its American business. As part of that strategy, Adidas bought Reebok in August in a $3.8 billion cash deal that dramatically expands the German giant's American presence.
"In the North American market, you can see that it is not a turnaround [of the brand] that has taken place, but a full-scale repositioning," Hainer told analysts at the meeting at company headquarters in Herzogenaurach, Germany. "We have changed the pace, changed the spirit, and retailers sense they want to be a part of it."
The U.S. last year accounted for about 23 percent of sales and is critical to the company's long-term success. Adidas earlier this year opened its largest flagship in New York's SoHo neighborhood. Stamminger told analysts the firm is gaining market share in the region because of technology innovation, customer service and improved relationships with retailer partners.
Stamminger has been operating since 2003 as Adidas' global marketing head and president and ceo of Adidas America, and the company is searching for someone to take over some of his responsibilities here, Hainer said in a question-and-answer period at the annual investor event. Stamminger will remain Adidas America's ceo, but he will be traveling more in Europe because of the World Cup soccer tournament, set this year in Germany, and Adidas needs an executive to oversee some of his day-to-day responsibilities, according to a company spokesman.
"It was never the intent for Erich to run both marketing and U.S. permanently," Merrill Lynch analyst Virginia Genereux wrote in a report after the conference.
Stamminger, a 22-year veteran of Adidas, took over the role of Adidas America president about two years ago following the departure of Ross McMullin, who was battling cancer and died in 2004.
Goldman Sachs analyst Margaret Mager said in a report, "Adidas' results are improving across regions as the turnaround in North America continues to take hold."The company reiterated that it expects to reach 20 percent earnings growth this year, with sales gains in the midsingle digits. Last year, Adidas had sales of $8.3 billion.
Adidas said it has a number of marketing and product events planned around the World Cup 2006. Adidas is an official sponsor of the event. Adidas also has aggressive sales goals for the Asia Pacific region, and said it has ramped up its offerings in golf and is planning a golf marketing campaign for 2006. New performance technologies such as Climacool and the Adidas 1 smart sneaker are driving footwear and apparel sales, Hainer noted.
Adidas gave little new information about its acquisition of Reebok, but Hainer said the deal has continued to move through regulatory purchases, and the company has put together an integration team headed by one Adidas executive and one Reebok executive.
The company has identified about 125 million euros, or about $150 million at current exchange, in annual cost savings and operating improvements related to the merger.
"Through this combination, we will benefit from a more competitive platform worldwide, well-defined and complementary brand identities, a wider range of products and a stronger presence across teams, athletes, events and leagues," Hainer said.
In August, Adidas purchased 24 acres of land adjacent to Reebok's headquarters in Canton, Mass., according to local Boston-area newspapers. There have been rumors swirling in the industry that Adidas is moving its North American headquarters to Reebok's headquarters in Canton, but a company insider told WWD that Adidas management recently sent out a company-wide note that said headquarters would remain in Portland, Ore.
@tradesy is turning the concept of a showroom upside down with its new space in Santa Monica. Here, the company plans to hold events, art exhibits and a showcase rare fashion pieces like this Louis Vuitton boxing set. Get all the details on Tradesy’s first showroom on WWD.com. #wwdnews
Spotted last night at the @erdem x @hm launch event: Kate Bosworth, Rashida Jones, Kirsten Dunst and Selma Blair. The party, which took place in LA, also marked the opening of their pop-up shop. “I was interested in creating a collection that wasn’t in any way disposable. It was about pieces you’d create and keep forever, things that have a permanence to it,” designer Erdem Moralioglu said. #wwdeye (📷: Katie Jones)
Renee Zellweger in yellow in 2001 and again in 2017. Chosen as one of the 12 @pantone Leading Spring Colors (and dubbed “Meadowlark”), it only makes sense that the bright hue stands the test of time and is making a resurgence this season, seen already on stars like @blakelively and @gigihadid. (📷: Donato Sardello & @rexfeatures) #wwdfashion #tbt
Dior’s 70th anniversary celebration continues with a new exhibition at the Royal Ontario Museum in Toronto. “Christian Dior,” which is scheduled to run through March 18, takes a look at the founders tenure from 1947 to 1057 and feature 40 designs. Pictured here is an evening gown from the Ailée, fall 1948-49 haute couture collection. #wwdfashion (📷: Brian Boyle)
As one of the most recognizable models in the world, Christy Turlington Burns has an insider’s view of the fashion industry and the allegations of sexual harassment swirling around it. “I can say that harassment and mistreatment have always been widely known and tolerated in the industry. The industry is surrounded by predators who thrive on the constant rejection and loneliness so many of us have experiences at some point in our careers,” Turlington told WWD, along with her suggestions for how the modeling world should protect younger women and men. Read more on WWD.com. Link in bio. (📷: Tony Palmieri) #wwdnews
@asics America has tapped a new brand ambassador: famed DJ/record producer @steveaoki. This initiative is intended to set the tone for the new brand identity and philosophy and will include partnerships with influencers and in-store and off-line activations that will continue into next year. This is Asics’ most significant marketing effort in two decades, and is expected to attract younger consumers to the brand. #wwdfashion
24-year-old Jean Prounis is redefining the rules of jewelry. Formerly a studio assistant to Jemima Kirke and a design apprentice at Ghuran, she focuses on handcrafted subtleties and ancient goldsmithing techniques. “There was a really sterile feel in the environment and I wanted to have jewelry with character that shapes how you wear it everyday,” Prounis said. Each piece is hand made in New York, either by Prounis or three other jewelers in the district. #wwdfashion
“These collections continue to build on that vision, empowering differently abled adults to express themselves through fashion,” said @tommyhilfiger of his line of adaptive apparel, which launches today. The line consists of 37 men’s and 34 women’s styles based upon the pieces from the spring Tommy Hilfiger sportswear collection. #wwdnews