Weak Performance Soothe Shareholders Adidas Take Buy Back Plan

In the wake of the extremely weak shareholder's dissatisfaction, in order to appease the shareholders, Adidas AG (ADSG.DE), Adidas group announced in October 1st that it would return 1 billion 500 million euros in the next 3 years, and the main 100 million share repurchase form was reflected. At the same time, the group said it would continue to issue its annual dividend with a net profit of 20%-40%.

Adidas AG, chief financial officer of Adidas group Robin Stalker, said it would buy back 20921618 shares of common stock by the end of May 7, 2019, and the repurchase price would be less than 10% of the market price. The buyback plan will be officially launched in the fourth quarter of 2014.

By the end of July,

The biggest sporting goods manufacturer, Adidas AG, Adidas group, issued a third profit warning in a year, saying its net profit will decline to 650 million euros in the current fiscal year. The previous forecast is 8.3-9.3 billion euros, while net profit in fiscal 2013 is 787 million euros, and annual sales growth has dropped from high single digit to medium to high single digit.

At the beginning of August, Adidas AG, Adidas group released interim results, saying that the net profit in the two quarter ended June 30, 2014 was 145 million euros, worse than analysts' expectations of 150 million euros, down 15.2% from 1.71 dollars a year earlier, and 0.69 euros per share, down 16% from 0.82 euros a year earlier.

The weak performance made the shareholders very unhappy. In September, the German media "Manager Magazin" quoted the news that several large hedge funds were interested in joining the Adidas AG Adidas group, which also led to the stock price of the second largest sporting goods manufacturers in the world.

Up 4.6%, the biggest rise in 10 months in 2013.

It has been reported that The Children 's Investment Fund Management UK LLP, Knight Vinke Asset, Knight and Vinke three funds will be forced to become the chief executive of Adidas CEO since 2001, and seek to break up the Reebok brand and golf business of the group.

But Bloomberg quoted insiders as saying that Knight Vinke Asset Management LLC did not participate in the negotiations on Adidas AG Adidas, while Adidas AG Adidas spokesman Katja Schreiber was responding to the group's "continuing constructive dialogue with investors".

In addition, the Wall Street Journal said according to internal sources that Herbert Hainer was also under pressure from existing shareholders of the group.

The big shareholders criticized the performance of Herbert Hainer when they met with representatives of Adidas AG, Adidas. They thought that Herbert Hainer should respond faster when facing the decline of the North American TaylorMade golf business, which is quite different from their support for Herbert Hainer in March this year from two years to March 2017.

TaylorMade golf group, which also bought Reebok Reebok brand for 3 billion euros in 2006, also disappointed investors.

Despite the initial success of the Reebok Reebok brand pformation fitness brand, analysts expect the brand to break even at the operating profit level in recent years, but it has failed to help the group retain its market share in North America. Adidas AG Adidas not only lagged behind Nike Inc. (NYSE:NIKE) Nike group, but also surpassed Under Armour Inc. (NYSE:UA) to third place in the US sports brand.