Adidas Falls as CNBC Says Reebok Unit May Lose Contract With NFL to Nike
Adidas AG, the world’s second- biggest sporting-goods maker, fell the most in more than three months in Frankfurt trading after CNBC said the company’s Reebok unit may lose a contract with the National Football League.
Adidas declined as much as 3.3 percent, the most since June 29. The shares were down 52 cents, or 1.1 percent, to 46.57 euros at 1:40 p.m. local time.
Adidas, which bought Reebok in 2006, wants to make the unit more profitable by repositioning it as a fitness-apparel and shoe specialist. Reebok is also the official supplier of jerseys to the National Hockey League.
Larger competitor Nike Inc. may become the official apparel maker for the New York-based NFL beginning in 2012, CNBC reported yesterday, citing unidentified people familiar with the situation. The deal may last for five years, according to CNBC.
“Reebok’s NFL contract represents about $350 million of its $565 million in U.S. apparel revenues,” Kate McShane, an analyst at Citigroup in New York, wrote in a note to investors yesterday. If Nike assumes the entire contract, the company’s earnings per share could increase by 9 cents or grow as much as 3 percent in 2012, she said.
Adidas spokeswoman Katja Schreiber declined to comment on today’s report and wouldn’t give an estimate of NFL-related sales.
“If we lose the NFL it won’t make or break our company,” Chief Executive Officer Herbert Hainer told CNBC Sept. 29.
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