German sportswear maker Adidias AG plans to sell its brand Reebok, which it bought 15 years ago to take on archrival Nike on its home turf. As per Colin Wong, Portfolio Manager, Mawer Investment Management, this might be an attractive target for the firm to break into the US market. Some of the potential options before Adidas include pinning Reebok off as a stand-alone public company, or selling the brand to private equity, another major sports retailer or a multi-brand player like VF Corp.

Reebok’s net sales fell 7 per cent in the third quarter of 2020 to €403 million after falling as much as 44 per cent in the preceding quarter. In 2019, Adidas wrote down Reebok’s book value by nearly half, compared with 2018, to €842 million. The brand recently collaborated with celebrities like Cardi B and focused on women’s apparel, which put it in a better place, said Jessica Ramirez, retail analyst at Jane Hali & Associates.

Adidas expects its overall sales to drop in the last three months of the year as the reimposition of lockdowns in Europe would likely offset a return to growth in China and strong demand for running gear and products designed by singer Beyonce.