Adidas Announces 1 Billion 500 Million Euro Stock Buyback Plan

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Xiaobian of the network to introduce the weak performance of the conciliatory shareholder Adidas announced the 1 billion 500 million euro stock buyback plan.

In the wake of the extremely weak shareholder's dissatisfaction, in order to appease the shareholders, Adidas AG (ADSG.DE) Adidas group announced the plan of 1 billion 500 million euro return for 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 20%-40% of net profit.

Adidas AG

Robin Stalker, group chief financial officer, 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.

At the end of July, the Adidas AG Adidas group, the largest sporting goods manufacturer in Europe, 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 the net profit in fiscal 2013 is 787 million euros. The annual sales growth has dropped from a high figure to a median high figure.

In early August, Adidas AG Adidas group released its interim results, saying that the net profit in the two quarter ended June 30, 2014 was 145 million euros, which was weaker 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 quoted the news that several large hedge funds were interested in joining the Adidas AG Adidas group. The news also caused the stock price of the second largest sporting goods manufacturers to increase by 4.6% on that day, the biggest increase in 10 months since 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 group's Reebok brand and golf business.

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 responded to the group's "continuing constructive dialogue with investors".

In addition, it is reported that Herbert Hainer has also been under the pressure of the existing shareholders of the group.

The big shareholders criticized the performance of Herbert Hainer at the meeting with representatives of Adidas AG Adidas. They believe 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.

In addition to the TaylorMade golf business, the group's Reebok Reebok brand, which was purchased in 2006 for 3 billion euros, also disappointed investors.

Although Reebok Reebok brand pformation fitness brand has achieved initial success, 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 is not only behind Nike Inc. (NYSE:NIKE).

The group was also overtaken by Under Armour Inc. (NYSE:UA) to the third place in the US sports brand.