Jan. 14 (Bloomberg) -- A mountaineering and trekking shoe that gives wearers a stronger grip will become the first product to go on sale as a result of Adidas AG’s 2011 acquisition of the Five Ten performance footwear brand.
The Terrex Solo Stealth will be available from July after being presented at a show in Salt Lake City later this month, Rolf Reinschmidt, the head of Adidas’ outdoor business, said in an interview. A high-friction rubber compound gives the shoe “unbeatable grip” and provides “a perfect bond with the ground,” according to Herzogenaurach, Germany-based Adidas.
The shoe, which will be priced at $120, “is the first visible product collaboration” between Adidas and Five Ten since the $25 million acquisition of the California-based company, Reinschmidt said. The rubber compound was developed by Five Ten founder Charles Cole in 1985.
Adidas, the world’s second-biggest sporting-goods maker behind Nike Inc., plans to boost sales of its outdoor unit to 500 million euros ($668 million), or 2.9 percent of the 17 billion euros of group revenue it forecasts by 2015. Outdoor products accounted for 300 million euros, or 2.3 percent, of revenue in 2011, spokeswoman Katja Schreiber said by phone.
“We expect that the importance of the outdoor segment will further grow globally,” Reinschmidt said, citing Korea and Japan as “very technical outdoor markets that love innovative products.” He also identified China, Russia, Germany and the U.S. as key markets. Activities such as rock climbing, indoor climbing and bouldering are growing “considerably,” he said.
Reinschmidt has led the outdoor-sports unit since 2007 and has a team of 60 employees developing high-tech apparel and boots. Adidas’s outdoor apparel includes the 360-gram Terrex Gore-Tex Active Shell jacket, which is designed to protect trekkers at heights of up to 6,000 meters (19,686 feet). The brand’s outdoor footwear includes the Terrex Fast R.
“Our clear focus is the Terrex collection,” Reinschmidt said. Terrex products are developed for activities including mountaineering, climbing, alpinism and ski-touring, he said.
Adidas shares gained 1.7 percent to 68.23 euros at 4:50 p.m. in Frankfurt today. The company is schedule to release full-year earnings on March 7.
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