FRANKFURT—Adidas AG’s new chief executive officer is doubling down on surging sales of casual sneaker lines such as Stan Smith and Tubular to transform the German sportswear maker into a fast-fashion business and gain ground on larger rival Nike Inc. Sales of so-called lifestyle products from the Originals, Neo and Y3 lines rose 45 per cent in 2016, more than triple the pace of performance sports gear, the company said Wednesday. CEO Kasper Rorsted said focusing on fast-fashion and stripping away non-core businesses like golf and hockey will increase profit more than expected, lifting the shares to a record. Adidas is betting big on a fashion trend that has also lifted smaller German sportswear brand Puma as consumers shift away from hard-core providers of athletic gear such as Under Armour Inc.Adidas’s new leader said he plans to “over-invest” in the U.S., where the company trails Nike, and speed up its supply chain to sell more goods at full price. Adidas also plans to quadruple online sales to €4 billion ($5.7 billion) by 2020 and divest itself of the CCM hockey business as it focuses on its namesake label and the Reebok brand.

Source: thestar March 08, 2017 20:48 UTC