Reebok Chair Paul Fireman acknowledged yesterday that his
company "has lost the high end off the athletic footwear market
to Nike," and that Reebok "has no hopes of making significant
inroads" until the second half of next year, according to this
morning's WALL STREET JOURNAL. Joseph Pereira reports that
Fireman's "unusually frank" statement marks the first time he has
"conceded defeat in such explicit terms," and "comes on the heels
of public criticism by large shareholders." Pereira notes that
some analysts believe Fireman's comments "could be an attempt to
wipe the slate clean of bad news to set the stage for a
comeback." The high-end of the athletic footwear market is
generally considered in the $80-$100 range. Fireman said Reebok
won't have any new products in this range until the second half
of '96. However, Pereira notes that Reebok is attempting "to
close the gap" by "making amends" with Foot Locker by "developing
exclusive models for the retailer." Reebok's third quarter
earnings were down 10% to $76.2M, from $84.7M in the same period
in '94 (WALL STREET JOURNAL, 10/18).
