Finish Line's Earnings Drop In Q4 Wheaties Ads Spotlight Legendary Bowler Airbnb Signs On For '16 Games MLS Reaches TV Deal With Brazil's Globosat NCAA Tourney Continues Record Ratings National Women's Hockey League Created TaylorMade-Adidas Golf CEO Steps Down Unions, Inglewood NFL Developers Reach Deal Classified Advertisements Grassroots Approach Spurred United's MLS Expansion
In the wake of adidas' $1.3B purchase of Salomon, adidas and Nike "are squaring off to see which will dominate the sporting-goods market in the next century," according to Woodruff & Trinephi of BUSINESS WEEK. adidas CEO Robert Louis-Dreyfus "has outmaneuvered Nike in the rush to diversify from shoes and apparel -- a crucial strategy that may push Nike to look for more acquisitions. ... Salomon's product line gives Adidas a new edge. The company makes finely engineered products that command premium prices and deliver higher margins than T-shirts or sneakers. They also attract attention from upscale consumers." Woodruff & Trinephi add that Salomon's bindings "are the industry standard for both downhill and cross-country skis," and that one-fourth of adidas-Salomon's sales "will come from such high-margin products" (BUSINESS WEEK, 9/29 issue).