In an article published in the Boston Globe, author Jon Chesto outlines several announcements coming from Reebok leadership following a quarterly earnings call from last week. Newly appointed Adidas CEO Kasper Rorsted has announced the company is selling Reebok’s Canton, Massachussetts-based campus, moving roughly 700 employees to a location in Boston, and either laying off or relocating (some to Adidas’ North American HQ in Oregon) around 300 more employees. (Reebok is owned by Adidas Group.)

Rorsted also emphasized the apparel conglomerate’s desire to move Reebok toward higher price point items while staying committed to the fitness space. In the past seven years, Reebok  has signed official apparel deals with CrossFit and UFC, moving away from more established pro sports like basketball and football and into growing fitness niches.

Reebok Delta

Image: ReebokUSA, Used Under CC BY-SA 4.0; image cropped for featured

While Reebok’s revenue has been growing at a rate of around 7 percent, growth — and the brand’s profitability — still lags behind other brands under the Adidas umbrella.

And while wording was still somewhat ambiguous and non-committal, the new Adidas CEO left open the possibility of selling Reebok to another company down the road — although the apparel brand doesn’t currently seem to be on the auction block.

What these announcements mean for Reebok’s partnerships — including with CrossFit and sponsorship of the Reebok CrossFit Games — remains to be seen. But we’ll be keeping our eyes out for developments around a company that was one of the first to dive into the functional fitness space.

Comments

Previous articleWatch Olympic Gold Medalist Aleksey Torokhtiy Make His Transition Into CrossFit
Next articleWatch Larry Williams Crush the Powerlifting Total Record at 242 Pounds
BarBend's Co-Founder and Editorial Director, David is a veteran of the health & fitness industry, with nearly a decade of experience building and running editorial teams in the space. He also serves as a color commentator for both National and International weightlifting competitions, many through USA Weightlifting. David graduated from Harvard University and served for several years as Editorial Director/Chief Content Officer of Greatist.com. In addition to his work in the health & fitness industry, David has been a writer for Fortune and Fortune.com, as well as a contributor to Forbes.com, Slate, and numerous other outlets across the web and in print. He's especially passionate about the intersection of strength sports and quality, professional media coverage — overlapping interests shared by the BarBend editorial team and which drive their content strategy each and every day. David is a proud Kentucky native. In his free time, David is a voiceover actor and can be heard in animated films, independent shorts, music videos, commercials, and podcasts.