Adidas in talks to tap rival Puma for new CEO

An appointment of Bjorn Gulden would ease investor concerns about the future of the German sportswear company

Fri, 04 Nov, 2022 - 16:23

Eyk Henning and Tim Loh

Adidas is in talks with Bjorn Gulden from rival Puma to become the new chief executive of the larger German sportswear company as it seeks to revive its fortunes.

Mr Gulden is a “potential successor” to current CEO Kasper Rorsted, Adidas said in a statement.

Adidas shares surged over 20% following Puma’s announcement that Arne Freundt, its chief commercial officer, would succeed Mr Gulden in the top role at the beginning of next year.

At Adidas, an appointment of Mr Gulden would ease investor concerns about the future after the company said in August it had initiated a search to replace Mr Rorsted.

The departing CEO drew criticism for his handling of the relationship with Ye, formerly known as Kanye West.

Adidas terminated their partnership, called Yeezy, following antisemitic remarks and other erratic behavior by the rapper.

Adidas has also suffered setbacks of late in China, once a big growth market, where boycotts of western brands and lockdowns have hit sales.

During his tenure at Adidas, Mr Rorsted presided over a steady increase in the stock, valuing the company at more than €67bn around this time just last year.

Since then, the shares have come back to levels similar to when he took over in 2016.

Mr Gulden is no stranger to Adidas, where he was once senior vice president of apparel and accessories.

He later became managing director of footwear retailer Deichmann, where he oversaw US subsidiaries Rack Room Shoes and Off Broadway Shoes.

Mr Gulden became CEO of Danish jewelry brand Pandora in 2012 before taking over the leadership of Puma in July 2013.

Adidas and Puma have a decades-long rivalry. The two companies were founded by brothers — Adolf and Rudolf Dassler — who grew to hate each other in the aftermath of the Second World War.