If the share price developments Monday are anything to go by, Kasper Rorsted is the kind of man who can really impact a company’s fortunes.
In a surprise announcement, German consumer goods maker Henkel on Monday said its Danish chief executive will step down by the end of April. But there was another German retail company that seemed to be eagerly awaiting the news. Less than two hours later, Adidas announced Mr. Rorsted will take over the leadership of the sportswear maker in October.
The news sent Henkel’s preference shares tumbling, down nearly 5 percent in morning trading in Frankfurt, and making them the biggest decliner in Germany’s blue-chip DAX index. Adidas shares surged nearly 10 percent by 12:30 local time, making it the DAX’s biggest winner.
There is hope that Mr. Rorsted, a popular leader who by most accounts has revived Henkel’s fortunes over his last eight years in charge, will now work his magic at the struggling sportswear manufacturer.
“It is a very good decision, because Mr. Rorsted can do at Adidas what he has done at Henkel: increase profitability,” Ingo Speich, a fund manager from Germany’s Union Investment, which owns 1.2 percent of Adidas shares, told Handelsblatt Global Edition.