Adidas shares jump after firm sells Rockport unit for $280m
Adidas shares jump after firm sells Rockport unit for $280m. Adidas Group

Shares in Adidas surged on 23 January on news that the German firm had sold its Rockport unit for $250m, to a new company formed jointly by US-based rival New Balance Athletic Shoes and Berkshire Partners.

The sportswear maker's stock also drew support from news that its 2014 sales had risen 2%.

Adidas's stock was trading 3.61% higher at 1207 CET in Frankfurt.

Rockport is a maker of boat and dress shoes. The sale will allow Adidas to focus more on sporting goods, but forced the firm to take a "double-digit million euro" hit to its 2014 results, according to a company statement.

2014 earnings

Adidas separately reported better-than-expected sales figures for 2014 on Friday, and said it will meet its profit target, excluding charges from the sale of its Rockport brand and a hit from the falling Russian rouble.

In an unscheduled statement ahead of full results due on 5 March, the world's second biggest sportswear firm behind Nike said 2014 sales rose 2% to €14.8bn (£11bn, $16.7bn), beating expectations.

Adidas also said it will book goodwill impairment losses of around €80m owing to the significant fall of the rouble.

Adidas Group CEO Herbert Hainer said: "Rockport is a brand that has performed well over the last years. However, our focus is clearly on sport and operating a brand portfolio with a clear agenda to unleash the potential of athletes and inspire consumers to live active lives.

"The brown shoe category is not core to this strategy and the sale of Rockport will allow us to reduce complexity and pursue our target consumer more aggressively with the Adidas, Reebok and TaylorMade brands."

Hainer said separately: "Our strong sales momentum for Adidas and Reebok continued through the fourth quarter, with the group recording double-digit growth in Western Europe, Greater China, European emerging markets and Latin America. Despite continuing pressure as a result of further currency weakness in Russia/CIS, we achieved our 2014 earnings target...."

Adidas bagged Rockport when it purchased Reebok in 2006.