The history of Adidas - the second largest sporting goods manufacturer in the world
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- 27/06/2022
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adidas235.00 EUR-3.39%Henkel KGaA St.71.90 EUR2.06%Nike Inc.123.88 EUR-2.38%PUMA SE87.70 EUR-3.09%Show shares in this articleadidas235.00 EUR -3.39%Trade here for 0 Show all Equipping athletes with sports shoes 1990 founding of the AG Today around 20 billion euros in sales and around 60,000 employees worldwide"Gebrüder Dassler Schuhfabrik"
The company history of today's second largest sporting goods manufacturer in the world started in 1924. The later adidas founder Adolf "Adi" Dassler worked together with his brother, who later became PUMA -Founder Rudolf Dassler, the entry of the company "Gebrüder Dassler Schuhfabrik" in the commercial register. While the inventor Adi Dassler was responsible for the production of sports shoes, brother Rudolf Dassler took care of the acquisition, according to a report in the "Neue Zürcher Zeitung". At the 1928 Olympic Games in Amsterdam, athletes wore the company's sports shoes for the first time, as did four-time medalist Jesse Owens at the 1936 Olympic Games in Berlin.
In 1948, however, the two brothers fell out. There was a separation and a new start: On August 18, 1949, Adi Dassler founded the "Adi Dassler adidas Sportschuhfabrik" with 47 employees in Herzogenaurach. Victory at the soccer World Cup by the German national team in 1954 was the breakthrough for adidas and made the company known all over the world: in the World Cup final against the supposedly superior team from Hungary, the German team played with adidas soccer shoes and won the first world title. To this day, adidas is the outfitter of the German Football Association DFB.
A turning point in the success story
But despite the many successes of adidas shoes, clothing and balls, the company's path did not always lead upwards. After Adi Dassler died in 1978, his wife Käthe took over the management of the company. However, she succumbed to heart disease in 1984. Three years later, their son Horst Dassler also died. The four daughters handed over the management of the company to an external management. According to a report in the "Süddeutsche Zeitung", adidas fell into a serious crisis under his leadership. In the mid-1980s, key company figures began to stagnate. Competitors Nike and Reebok, who had emerged from the US market, made things difficult for adidas. In 1992, the company reported a record loss and was on the "brink of ruin" as a result of "changing management and dubious strategic decisions".
Foundation of an AG
In 1989, adidas was converted into a public limited company. To save the company, the adidas founder's daughters sold their shares. A change in personnel was needed, Robert Louis-Dreyfus took over and put adidas back on the road to success. Plagued by financing difficulties, adidas went public in November 1995. The issue price was the equivalent of around EUR 9.63. In 1998, the company's shares were included in the DAX. In 2001, the current President of FC Bayern Munich, Herbert Hainer, took over as CEO of adidas AG. Under him, adidas took over American competitor Reebok in 2005 for 3.1 billion euros.
Success is coming again
At the beginning of the 2000s, adidas repositioned itself. In addition to the sports performance products for practicing a sport, adidas introduced a lifestyle segment with a focus on sporty everyday clothing. According to the "Süddeutsche Zeitung", adidas has already managed to shape the "zeitgeist of entire generations" with its products earlier in the company's history. Queen musician Freddie Mercury performed in front of an audience of billions in white adidas wrestling shoes at the Live Aid concert in London's Wembley Stadium in 1985. Models specially made and placed on the market for superstars outside the sports world such as Madonna, Pharrell Williams or ex-tennis legend Stan Smith have continued to develop as real bestsellers. The Yeezy shoes, which were built in collaboration with hip-hop star Kanye West, were worth four figures to fans and are said to have made the rapper a billionaire, according to Forbes. According to the "Gevestor" portal, adidas is now the second largest sporting goods manufacturer in the world, behind Nike.
Clear signs of corona at adidas
Kasper Rorsted, who replaced Herbert Hainer as CEO in October 2016, is at the helm of the company today. Rorsted previously headed consumer goods company Henkel for eight years. According to its own statement, adidas is currently focusing on the shoe and clothing market with its two brands adidas and Reebok. In the past fiscal year 2020, important key figures of the company suffered badly from the corona pandemic. Profits collapsed by 78 percent - from 1.9 billion euros to 429 million euros. Sales fell by 14 percent to 19.844 billion euros. adidas employed around 60,000 people worldwide in the past financial year.
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