Adidas stock boosted, Puma CEO picked to lead Adidas by end of year

Yahoo Finance Live anchors discuss the Adidas stock reaction on news that outgoing Puma CEO Bjorn Gulden is set to become the next Adidas CEO.

Video transcript

- So let's get back to the main point here because I am looking at something that is up today. And this is the European sports apparel juggernaut Adidas. Up about 25% and having some of its best day since 2005. And this is on the news that it's in talk with the outgoing Puma CEO Bjorn Gulden to take over from current CEO Kasper Rorsted. Gulden is leaving Puma at the end of the year already amid record profits and sales. Yet the stocks of both Adidas and Puma, numbers two and three in the athletic sector, are both considerably down this year, though Adidas is off a bit more perhaps due to its controversial relationship with Ye, which it recently terminated.

Now, I want to go back to the YFi Interactive and just show you a comparison chart. This is Adidas versus Puma. I said they were neck and neck. Both down about 60% on the year. Although if you take a look at the last three years, it is favoring Puma a bit there, Seana.

- Yeah, it certainly is. When you take a look at Adidas, the company needed to do something to turn things around. At least that was the message that we're getting from Wall Street. Adidas had really been under fire most recently because of the partnership with Kanye. So it'll be interesting to see how this new CEO approaches maybe future partnerships like this here, Rachelle.

- Yeah. And we know that Adidas also teamed up with British rapper Stormzy. Hopefully, that will end a little bit better than the collaboration with Kanye, for sure.

- Yeah. Certainly, Wall Street pretty excited about this move today.