Adidas Searches for New CEO

FRANKFURT-- Adidas AG said Thursday it was conducting a search to replace its longtime chief executive, as the German sportswear maker struggles with a series of profit warnings and investor pressure for change at the top.

Chief Executive Herbert Hainer has presided over the world's No. 2 sportswear maker behind Nike Inc. since 2001. His contract was extended last year until March 2017, and the company at the time said the move was to allow time to find a successor.

But Thursday's announcement about the CEO search, contained in a letter to employees, was the first time the company had provided detail about the search.

In late morning trading, Adidas shares were up 5.9%.

Over the past year, Adidas has been hit by headwinds, including disappointing sales at its golf unit, and in its two biggest markets: the U.S. and Russia. Shares fell roughly 40% last year amid two profit warnings in 10 months. Though shares have recovered somewhat this year, big shareholders have been pressuring Adidas for management changes.

In the letter to employees, Mr. Hainer said Adidas will present a five-year strategic plan in March. The presentation has been scheduled since last year. He also said the company was looking at internal and external candidates to replace him.

Mr. Hainer said in the letter the company has had a successful start to the year after efforts in recent weeks and months to strengthen the brand and realign the company.

"I am very conscious that all these changes weren't always easy and weren't always fun to implement, also because a lot of external criticism was brought on the company," Mr. Hainer said.

Write to Natalia Drozdiak at [e-mail]

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