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Unlocking Word Meanings
Read the following words/expressions found in today’s article.
- off-load / ˈɔfˌloʊd / (v) – to give away or sell something unwanted
Example:It’s difficult to off-load properties in areas far from the business center.
- head-to-head/ ˈhɛd təˈhɛd / (adv) – in a direct competition with someone or something
Example:The start-up plans to go head-to-head with the top company in the industry.
- slump / slʌmp / (n) – a decrease or decline in something
Example:The company has been in a slump ever since it changed its management.
- underperform / ˌʌn dər pərˈfɔrm / (v) – to be less successful than what was expected
Example:The new phone underperformed in the market, so the company decided to stop its production.
- waver / ˈweɪ vər / (v) – to become uncertain or unsteady
Example:Gas prices seem to waver a lot nowadays because of changing supply and demand.
Article
Read the text below.
German sportswear giant Adidas is planning to sell its Reebok brand 14 years after acquiring it.
According to one report, Adidas is aiming to complete the sale early next year. Prior to Covid-19, Adidas CEO Kasper Rorsted initially planned to off-load Reebok for around $2.4 billion. The brand’s current selling price is still unknown, but the report estimates Reebok’s value to be around $995 million.
Parties that are interested in buying Reebok include VF Corp., owner of outdoor apparel brands Timberland and North Face, and Anta International Group Holdings, which owns Italian sportswear brand FILA.
Before it was bought by Adidas in 2006 for $3.8 billion, Reebok was the world’s third-largest sportswear brand. Adidas acquired the brand to go head-to-head with US sports apparel company Nike. A year after its acquisition, Reebok contributed to more than $2 billion of Adidas’s total retail sales.
In recent years, however, there has been a steady slump in Reebok’s sales. The sportswear brand closed its underperforming stores and let some brand licenses expire. Although those actions reduced the brand’s sales, they helped cut expenses even more. The brand regained profitability again in early 2019 after partnering with fitness company CrossFit and releasing new footwear products.
This year, Reebok’s profits have once again wavered because of the pandemic. While Adidas’s sales fell by 33% in the second quarter of 2020, Reebok’s revenue decreased by 42%, resulting in only $270 million in sales.
Viewpoint Discussion
Enjoy a discussion with your tutor.
Discussion A
• Why do you think some companies are still interested in buying Reebok? Discuss.
Adidas Numbers Font
Discussion B
Adidas Font Free
• What kinds of businesses do you think are doing well these days (e.g. online businesses, delivery services)? Discuss.