German sportswear company Adidas has completed its second share buyback program for 2021, repurchasing 1,619,683 shares totaling €450 million ($530 million). The shares were bought at an average price of €277.83 ($327.65) each between October 18 and November 25, 2021.

This buyback program is part of Adidas’ “Own the Game” strategy, which focuses on generating strong cash returns for shareholders. The company plans to distribute the majority of its estimated free cash flow of between $8 billion and $9 billion through 2025 to its shareholders. This will be done through regular dividend payments, ranging from 30% to 50% of net income from continuing operations, as well as share buybacks.

Adidas has made significant efforts to repurchase shares this year. Along with the first buyback program and a dividend payment of €585 million ($689 million) in May, the company has returned a total of nearly €1.6 billion ($1.88 billion) to its shareholders in 2021.

Moving forward, Adidas intends to continue its regular share buyback activities in early 2022. Furthermore, the company plans to use the cash proceeds from the sale of its Reebok brand to complement the buyback programs. Authentic Brands Group, based in New York, will acquire Reebok for €2.1 billion ($2.47 billion) in the first quarter of 2022. The majority of the repurchased shares will be canceled.

Adidas CFO Harm Ohlmeyer expressed confidence in the company’s positive outlook for 2022 and emphasized the importance of dividends and share buybacks in the “Own the Game” strategy. The buyback programs, along with the anticipated sale of Reebok, are expected to create substantial value for the company and its shareholders.

Useful links:
1. Adidas Share Buyback Program
2. Adidas repurchases shares to benefit owners