Separately, the Adidas Group has agreed to take over Five Ten, the family-owned Californian brand, to complement its own offering of outdoor footwear with more specialized climbing and mountain biking products. The two parties have agreed on a price of $25 million in cash, and contingent payments depending on the performance of the brand in the next three years. The transaction is expected to be completed in the next couple of weeks.

Five Ten is owned by the family of Charles Cole, who established the brand and its distinctive rubber compound, Stealth, in 1985. Cole will remain at the helm of the company at its head office in Redlands, California. Five Ten's entire team of 37 employees is expected to remain on board.

The “brand of the brave” should reach sales of about €16 million this year, excluding its business with distributors in Japan and South Korea. With these two countries, Five Ten's sales are split almost equally among North America, Asia and Europe.

Launched about two decades ago, Five Ten's European business is supervised from an office in Belgium, employing six people and dealing with distributors and agents in about 30 countries. The brand's European sales are set to reach just over €6 million this year, up by more than 30 percent, particularly due to fast-growing demand in the cycling market.

While Five Ten will remain largely independent, the infrastructure of the Adidas Group will support Five Ten's development in international markets. Adidas further spotted some opportunities to improve Five Ten's sourcing, sales and logistics. Find out more in The Compass.