Adidas CEO Kasper Rørsted has shocked the apparel industry by departing the company after renewing his contract in 2020 for another five years.
The soon-to-be former CEO will make his exit in 2023. After a series of unfortunate events, including COVID 19, inflation, and rising supply chains, sales have plummeted, boosting Asian sales. Rørsted recommended that the company appoint a new CEO to re-evaluate the sales strategy.
Adidas announced, “After three challenging years that were marked by the economic consequences of the COVID-19 pandemic and geo-political tensions, it is now the right time to initiate a CEO transition and pave the way for a restart.”
He will remain the CEO until the new successor takes over to ensure the company has a smooth transition.
Bloomberg reports, “Adidas shares have lost about 37% in value this year, ranking them among the worst performers on the 50-member Euro Stoxx 50 Index. The stock slumped as much as 6.9 euros, or 4.2%, to 158.7 euros in Frankfurt following the announced CEO change.”
When he initially took over, he increased the company by 67 billion euros in 2021, per Bloomberg. However, since the pandemic and more supply changes, the company’s value has fallen drastically while Nike and Puma increased.
The company and Rørsted have mutually agreed on his departure. While the company scrams to find a new replacement, Rørsted will officially exit next year.
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