Reebok reports lower sales

24/10/2005

Reebok International Ltd has reported net income for the third quarter ended September 30, 2005 of $117.7 million compared with $81.8 million for the third quarter of 2004. However, net sales for the 2005 third quarter were $1.04 billion compared with 2004's third quarter net sales of $1.16 billion. For the Reebok Brand, worldwide sales in the 2005 third quarter were $912 million as compared with 2004's third quarter sales of $1 billion.

The company stated that third quarter 2005 results had been impacted by an after-tax gain of $49 million from the sale of the company's Ralph Lauren Footwear business and $2.5 million of costs pertaining to certain legal and other expenses associated with the proposed merger with adidas. In addition, the company's operating results were said to have been affected by the previously announced integration of The Hockey Company into the Reebok Brand and from the company's previously announced plans to reposition its business with Footlocker, Inc.

Paul Fireman, the company's chairman and CEO said, "This was certainly an eventful and unusual quarter for us…”