Adidas CEO Kasper Rorsted to Depart Company
Adidas chief executive officer Kasper Rorsted is leaving the German sports apparel group ahead of his contract expiration, the company revealed Monday.
Rorsted, who has helmed the company since 2016, will remain in his post while the search for a successor is underway, and the handover is expected to take place in early 2023. The company pledged a “smooth transition.”
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“After three challenging years that were marked by the economic consequences of the COVID-19 pandemic and geopolitical tensions, it is now the right time to initiate a CEO transition and pave the way for a restart. We are pleased that Kasper will ensure a smooth transition at the helm of the company during the upcoming months jointly with the supervisory board and executive board of Adidas AG,” supervisory board chairman Thomas Rabe said in a statement.
The sports apparel company said in reporting second-quarter results reported Aug. 4 that it expects to take a 400 million euro hit in order to clear excess inventory. The company reported a small, 4 percent increase in revenues and a slower-than-expected recovery in China.
“The past years have been marked by several external factors that disrupted our business significantly. It required huge efforts to master these challenges. This is why enabling a restart in 2023 is the right thing to do — both for the company and me personally,” Rorsted added.
Rorsted had been credited with driving changes in the group’s focus, shifting to direct-to-consumer sales and e-commerce, as well as expansion in the U.S. and China. In the second quarter, Adidas posted a net profit of 360 million euros, down 7 percent year-over-year, and partially boosted by a 100 million euro tax benefit. Operating profits plunged almost 28 percent.
The unexpected news of Rorsted’s planned departure caused Adidas shares to dive 5.2 percent on Monday, closing at 156.98 euros.
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