By Joshua Kirby


Adidas AG said Friday that it is in talks with Puma Chief Executive Bjorn Gulden as a potential successor, as the German sportswear company looks to move on from a series of recent travails.

Earlier Friday, Adidas's smaller rival Puma said Mr. Gulden would leave at the end of the year, with Germany's Manager Magazin reporting he was set to move to the larger company.

"Adidas AG confirms that it is in talks with Bjorn Gulden, CEO of Puma, as a potential successor," Adidas said.

Shares in Adidas surged after the news, gaining more than 22% to EUR114.80 as of 1508 GMT. Conversely, Puma shares lost 3.1% to EUR44.87.

Current Adidas CEO Kasper Rorsted is set to hand over the reins of the company to a successor at some point in 2023. His planned departure was made public in August after a string of disappointing results and guidance cuts at the company, which has suffered from slow recovery in the key China market. More recently, one-off costs relating to the group's exit from Russia, and a painful split with designer Kanye West and his successful Yeezy label, have exacerbated the financial challenges facing the company.

Mr. Gulden said he had taken the decision not to renew his contract after nine years at Puma's helm.

"I felt it was the right time for Puma, my successor and me to leave now," he said, adding that he wished to continue his career in an operational role. Unlike larger rivals Adidas and U.S. giant Nike Inc., Puma has had a successful year, with no cuts to guidance.

Mr. Gulden's departure is bad news for Puma, RBC Capital Markets analysts Piral Dadhania said in the wake of the news. Mr. Gulden has had a material impact on the business during his tenure, the analyst said in a note, adding, however, that there is no reason the company shouldn't maintain its momentum in the near-term.

For Adidas, the appointment of Mr. Gulden would be a good move given his impressive reputation, Mr. Dadhania said. Even so, a turnaround under a new leader won't happen overnight, he warned.

Mr. Gulden's successor, current Chief Commercial Officer Arne Freundt, will be given a mandate of four years as CEO beginning Jan. 1, Puma said.

The new CEO, who has been with the company for more than 10 years, "has been a designated candidate and is the ideal choice to continue Puma's very successful path and to further accelerate the company's momentum," Supervisory Board Chairwoman Heloise Temple-Boyer said.


Write to Joshua Kirby at joshua.kirby@wsj.com; @joshualeokirby


(END) Dow Jones Newswires

11-04-22 1130ET