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FINANCIAL REPORT GIVES REEBOK SHAREHOLDERS "INDIGESTION"

     Reebok Chair Paul Fireman met with 40-50 shareholders at a
New York restaurant Wednesday night to update them on the latest
"game plan" for "re-invigorating" the company.  But this
morning's BOSTON HERALD reports analysts said shareholders "came
away with indigestion."  Reebok's stock dropped $2 yesterday to
close at $26.125, its lowest price in more than two years.
Analysts say Fireman's statement Reebok intends to "shift away
from being fashion-oriented" and "concentrate on athletes who
wear their brands" means an admission "they are changing focus,
again."  Dana Cohen of Donaldson, Lufkin & Jenrette wrote, "It is
unclear who they view as their core customer.  It seems that by
moving away from the young inner-city kid they are taking their
eye away from the consumer that is the primary customer of the
product and the fashion driver. ...Reebok's brand position in the
marketplace remains unfocused."  Other analysts expressed concern
at Fireman's assertion that they will concentrate on athletes age
18-30, noting that the audience inferred "that the company
intends to neglect" 12-18 year-olds "who are so important to
sneaker makers" (Tom Nutile, BOSTON HERALD, 12/1).  Dean Witter
cut '96 earnings estimates for Reebok which also helped push the
stock down 2 1/8 yesterday ("Nightly Business Report," PBS,
11/30).
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