Adidas‘ current chief executive officer, Herbert Hainer, may be leaving the company in a wrong time, as the iconic German sportswear company’s shares are now placed in the premium level of its rival, Nike, for the first time in six years.
Rising 7% Wednesday, the brand’s first-quarter performance was a lot better than what analysts had predicted, as constant-currency sales rose 22% and prompting management to push up earnings-growth projections by a half.
The explanation is essentially a combination of market strength and sought-after products, and with the Olympic Games and European soccer championship in June and July, the brand continues to gain more momentum throughout the summer.
The newly appointed CEO, Kasper Rorsted, is expected to take over in October 2016. Adidas made a 3.5% operating in the world’s largest sportswear market last year, compared to 26.6% for Nike, notes Barclays.
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