Adidas CEO, Kasper Rorsted, is stepping down from his position after a mutual agreement between himself and the Adidas Supervisory Board was reached. Now there is a search for a replacement.
According to a press release, Rorsted will “remain CEO until a successor has been appointed.”
Thomas Rabe, Chairman of the Supervisory Board, expressed thanks to Rorsted:
Under Rorsted’s leadership adidas saw their online sales grow “by a factor of more than five.” He also “doubled” sales in North America. In addition to impressive sales figures, his tenure saw the “share of women in leadership positions” increase “significantly.”
Why is Rorsted leaving then? Rabe explains that:
Rorsted echoes these statements:
Rorsted joined Adidas in 2016 and was granted a contract in August 2020 until July 31, 2026. His tenure has been cut by three years.
This move has come shortly after Adidas lowered their earnings projections for 2022 due to Covid-related problems in China. They expect their revenue to decline at a double-digit rate for the rest of 2022. In addition, the company has expressed excess inventory is a challenge that will weigh on profits.
Adidas now expects their gross margin to sit around 49% in 2022, down from the 50.7% of previous expectations. Net income from continuing operations is expected to reach approximately €1.3 billion, down from €1.8-1.9 billion.
While that may seem all doom and gloom, Adidas noted that they hadn’t experienced a meaningful slowdown in sales nor any major cancellations of wholesale orders. The adjusted outlook is accounting for what Adidas sees as a potential slowdown of consumer spending globally.
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