Reebok Int'l said its second-quarter profits rose 2.6%
"on higher sales of its athletic shoes and clothing, but the
company warned that profit margins may suffer in the coming
year as it scrambles to meet demand for new products,"
according to Joann Muller of the BOSTON GLOBE. Reebok's net
income for the three months ended June 30 was $20.3M, or
$.35 per share, "in line with analysts' expectations."
During the same period last year, "when there were more
shares outstanding," Reebok earned $19.8M or $.27 per share.
Reebok repurchased 21% of its shares last year. Net sales
of $841M were up 2.9% over '96. Worldwide sales increased
4.8% for the quarter, but fell 4% in the U.S. Reebok
officials said that "despite the drop in US sales, the
overall health of the US footwear unit is better than last
year." Execs "were pleased ... with a shift that saw more
sales coming from specialty athletic shops and less came
from volume discounters." Reebok Chair Paul Fireman said
that "unexpectedly strong demand" for the new DMX and 3D
Ultralite shoe "has put pressure on the company to increase
production earlier than planned." Reebok shares closed
yesterday down 1/16 to 47 11/16 (BOSTON GLOBE, 7/18).