From the Sector

The Chief Creative Officer is the lead within the adidas design community and is responsible for shaping, defining, and shepherding the creative direction for the global brand and its three major labels – Performance , Originals, and Sportswear – to deliver a unified adidas brand experience. Willis will begin his contract beginning of April, reporting to Executive Board Member of Global Brands, Brian Grevy.

Willis is a creative visionary with a long-standing connection to adidas that dates back to 2005, most notably through his role in the concept and development of adidas by Stella McCartney in partnership with Stella McCartney He has remained integral to the growth and development of the partnership since its launch.

Beyond adidas by Stella McCartney, Willis has built a strong understanding of the company’s consumers, brand, labels, and categories through his work on a number of breakthrough projects, including a lead role in developing some of adidas’ most iconic material innovations.

Outside of his work with adidas he is revered for his tenure as Creative Director of British fashion heritage brand, Hunter, transforming what was a small single product business into a multi-category global fashion brand, and as co-founder of the trailblazing Wallpaper* Magazine. It is through this diverse experience that Willis brings not just creative expertise, but the ability to deliver across commercial, strategic, and leadership functions.

As Chief Creative Officer at adidas, Willis will provide global creative leadership, develop and nurture the brand’s creative culture, and empower teams across all design functions.

“Stepping into a permanent role at adidas and evolving our partnership is a great privilege and feels like an incredibly exciting and natural next step,” said Willis. “The power and influence of the brand on sport , sports culture, and beyond is immeasurable. I welcome the opportunity to help establish a new era of design and brand leadership at adidas and, together with the team, take adidas to even higher levels.”

“Alasdhair is a true icon of the industry and together we have produced some of adidas’ most innovative work, so to now have him lead our design community and set the future of our brand expression is a wonderful thing,” said Executive Board Member of Global Brands, Brian Grevy. “We are looking forward to seeing the influence of his unique creative vision, experience and expertise from developing and establishing some of the world’s most recognised brands.”

With the approval of the Supervisory Board, the Executive Board of adidas has decided to launch a multi-year share buyback program. Starting in January 2022, the company plans to buy back shares in an amount of up to € 4 billion until 2025. Taking into consideration the € 1 billion share buyback completed in 2021 already, the company intends to return up to € 5 billion to its shareholders through regular share buybacks alone during the five-year strategic cycle. The buyback activities are complemented by the company’s annual dividend payouts in a range of between 30% and 50% of net income from continuing operations.

Strong shareholder returns are a key component of adidas’ new strategy ‘Own the Game’. As part of ‘Own the Game’, adidas plans to generate substantial free cash flow until 2025 and return the majority of it – between € 8 and 9 billion – to its shareholders via dividend payments and share buybacks. In addition, the company plans to return the majority of the cash proceeds from the Reebok divestiture to the shareholders after closing of the transaction, which is expected in the first quarter of 2022.

“Over the next couple of years, our business will become significantly more cash generative than ever before”, said Harm Ohlmeyer, CFO of adidas. “And we will hit the road running in 2022: Driven by strong top- and bottom-line improvements, we will once again generate a high free cash flow, which we will almost entirely return to our shareholders next year.”

As with previous share buybacks, adidas intends to cancel most of the shares repurchased during the program, which would reduce the number of shares as well as the share capital accordingly.

Through its new strategy ‘Own the Game’ adidas expects to generate substantial cumulative free cash flow until 2025. The company plans to share the majority of it – between € 8 and € 9 billion – with its shareholders through dividend pay-outs as well as through share buybacks. In this context, adidas had launched a share buyback program in July which was completed successfully at the end of September. Between July 1 and September 30, 2021, the company bought back 1,851,522 shares for a total amount of € 550 million.

Against this background, the Executive Board, with approval of the Supervisory Board, has decided to launch an additional share buyback program. Starting on October 18, 2021, the company plans to buy back shares worth € 450 million until the end of the year. Taking into consideration the share buyback completed at the end of September, adidas will buy back shares in a total amount of € 1 billion in 2021. Including the dividend payment of € 585 million in May, the company will return nearly € 1.6 billion to its shareholders this year.

“The decision to launch an additional share buyback program reflects our strong financial profile as well as the successful start of the execution of our strategy ‘Own the Game’,” said Harm Ohlmeyer, CFO of adidas. “Regular share buybacks and dividends in the amount of between € 8 and € 9 billion are a key component of ‘Own the Game’. They will be complemented by returning the majority of the cash proceeds from the Reebok divestiture to our shareholders after closing of the transaction.”  

adidas intends to cancel most of the repurchased shares, which would reduce the number of shares and the share capital accordingly.