Adidas investors are beginning to question the performance of Chief Executive Officer Herbert Hainer as the company continues to receive unfavorable financial results.
The company's shares dropped by approximately 40 percent in fiscal year 2014 alone, with sales of Adidas products following a similar trend, Business Insider reports.
"If your upper management is in Germany, and they don't know Flatbush from Harlem from Virginia, it's hard to have that information percolate back up to the top and have that action executed," said Christine Noh, the owner of New York street-wear chain Nohble, who claims the company's German headquarters lost touch with American trends.
Despite recent attempts made by the company aimed at bringing more of an "American flavor" to their products, competitor Under Armor is said to have taken Adidas' historic position as Nike's biggest competitor. Now, Adidas is ranked behind Under Armor as the number 3 sportswear company.
Although investors have not blamed Hainer for all of Adidas' financial woes, they are certainly keeping a close eye on his corporate strategy moving forward.
Perhaps one of the most commonly cited mistakes Adidas' leadership is said to have made in the past is paying too much for the acquisition of Reebok in 2005.
"From the moment we started looking at the numbers, we knew it was a screwed-up business and that we'd paid too much," a former executive said of the $3.8 billion acquisition, according to the Wall Street Journal.
Nonetheless, Adidas continues to release new products for the sportswear industry and has announced new initiatives for the purpose of garnering a broader consumer market.
The company was founded in 1924.and is headquartered in Herzogenaurach, Germany.
