Adidas to Focus on E-Commerce, Direct Sales and Sustainability in New Strategy

   By Joshua Kirby 
 

Adidas AG on Wednesday set out its latest midterm strategy, including growth in e-commerce and direct-to-consumer sales and a focus on sustainability in its products and production processes.

The German sporting-goods company is targeting average annual revenue growth of 8%-10% at constant currencies between 2021 and 2025. This will be driven by a doubling of e-commerce sales to 8 billion-9 billion euros ($9.52 billion-$10.71 billion), while the direct-to-consumer business should grow to account for more than half of total sales by 2025, the company said.

Adidas is targeting an operating margin of between 12% and 14% and annual income growth of 16%-18% on average. The company expects to return a total amount of EUR8 billion-EUR9 billion via dividend payouts and share buybacks.

The company is also focusing on sustainability, with a target of nine out of 10 products made from sustainable materials by 2025. A 15% reduction in the carbon footprint is targeted, and Adidas aims to become climate-neutral in its own operations by 2025 through lower use of materials and energy, and greater use of renewable-energy sources.

Write to Joshua Kirby at [e-mail]; @joshualeokirby

(END) Dow Jones Newswires

March 10, 2021 06:14 ET (11:14 GMT)

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