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REEBOK, DESPITE EARNINGS GAINS, IS NOT SATISFIED
Published April 19, 1995
"Despite gains in sales and earnings," Reebok Int'l announced that it "failed to meet its first-quarter financial goals and would cut costs." Reebok said it has embarked on cost- cutting measures that include staff reductions at its Avia Group in OR. Last week, the OREGONIAN reported that Avia laid off nearly 10% of its OR-based work force. Reebok said it would "streamline its European operations and reduce spending in other areas." Reebok Chair Paul Fireman: "Although consolidated sales for the 1st quarter were close to outside projections, they were below our own plan, particularly in Reebok's business outside the United States, where favorable foreign exchange rates helped to increase sales in U.S. dollars." Sales for the quarter were $935.5M, an increase of 9.1% from '94. Sales for basketball and baseball shoes and Greg Norman apparel were strong. But Avia, a brand known for its appeal to women, "might be losing some market share" to Nike, according to Jennifer Black Groves of Black & Co. in Portland (Chris Reidy, BOSTON GLOBE, 4/19).