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Adidas' Hainer Coming Under Pressure From Stockholders As Company Underperforms

adidas investors "are putting pressure on the German sporting-goods giant to accelerate a turnaround, and even discussed with executives the possible removal" of longtime Chair & CEO Herbert Hainer, according to Eyk Henning of the WALL STREET JOURNAL. adidas "has struggled this year, hurt by its lagging golf and Reebok businesses." adidas shares "have fallen roughly 38% so far this year, compared with Nike's 10% gain." In meetings with adidas reps, large shareholders "have criticized" Hainer's performance. Sources said that critics argued Hainer "should have reacted faster to the steep slide in U.S. sales at its TaylorMade golf brand." The investor pressure on Hainer "represents a contrast from March, when Adidas extended Mr. Hainer's contract by two years," to March '17. Hainer is now "in the midst of his biggest challenge" as CEO. Investors said that surprise profit warnings "have dented Mr. Hainer's reputation." adidas in late July "cut its profit forecast for this year and next -- the third time it has lowered or missed financial targets in less than a year." The company "blamed declining demand for its golf products in the U.S., slumping sales in Russia and marketing costs for the World Cup, which it sponsored" (WALL STREET JOURNAL, 9/13).

MARK KING FOR A DAY: WOMEN'S WEAR DAILY's Jennifer Ernst Beaudry conducts a Q&A with adidas Group North America President Mark King, who said that his June appointment "is a sign that the German giant wants to do things differently." He added, "I will go down swinging. I will either hit a home run or I’ll strike out -- it’s one of the two -- and I think right now, for us, that’s important." King, who "rose through the ranks" at TaylorMade Golf to CEO in '03, has been part of adidas "since it bought TaylorMade 14 years ago." Hainer said that King "brings a history of success to the table." He added, "With Mark, we have an outstanding leader. He is the architect of TaylorMade’s rise to the No. 1 position in the global golf market over the last decade. I am very happy (he) has agreed to lead our North American business into a successful future." King said of criticism that adidas does not fully understand the American market, "Well, honestly, it’s very fair. But what I would say is this: One of the reasons they hired me is because I’m American. I have this passion for U.S. sport, and they want to -- for lack of a better way to describe this -- 'Americanize' the Adidas brand. Eric Liedtke, (the new head of global brands on the board), is moving the head of global design for all product, (global creative director Paul Gaudio), who’s an American, to Portland. He’s moving the head of brand communication, (VP Ryan Morlan), who’s an American, to America. These are big, bold changes for a German company." King added, "But that’s not the future. The future is about let’s create an Americanized brand called Adidas that resonates with the American athlete" (WWD.com, 9/15).

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