Adidas shares climbed by four per cent on Friday after the sportswear giant revealed it was selling its Rockport unit for $250m (£167m).
The German company’s stock was up by over four per cent as investors responded to better-than-expected sales figures for 2014.
Sales were up two per cent in 2014 to €14.8bn, Adidas revealed in an unscheduled statement ahead of the release of its final full-year results due on 5 March.
Rockport, a subsidiary brand of smart-casual shoes commonly made from leather, has been dumped as Adidas looks to narrow its focus on sports. Adidas took on Rockport as part of its takeover of Reebok in 2005.
A new entity formed by private equity Berkshire Partners and sportswear brand New Balance have agreed to take on Rockport for $280m. The transaction is set to be completed sometime in 2015.
Adidas CEO Herbert Hainer commented:
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.
Adidas’ share price is on the path to recover after a July profit warning triggered a dramatic fall.