Callaway Golf Reports Mixed Q2 Results CDI Reports Record Quarterly Revenue Providence Equity, WPP Eye $547M Chime Takeover DraftKings Closes On $300M Series D Round Nationals Welcome Star Wars Fans For Promo DraftKings To Close VC Funding In Coming Weeks FanDuel Closes On New VC Financing UFC Fighters Satisfied With Reebok Gear Scott Holds Ceremonial Signing for WPB Ballpark Reebok Important For Future UFC TV
REEBOK STOCK SOARS TO 52-WEEK HIGH, BUT IS IT DUE TO ADIDAS?
Published November 3, 2000
Reebok Int'l's share price "soared" to a new 52-week high yesterday, which company execs and analysts said was "fueled by strong sales reports from retailers of athletic footwear," according to REUTERS. Reebok closed yesterday at $23.25, up 9.73%. Its previous 52-week high was $21.94. Reebok VP/Corporate Finance Neil Kerman: "One thing that happened today was that Venator Group ... announced their earnings ... which showed athletic group sales were up 11.3 percent. They are one of our largest customers." First Security Van Kasper analyst John Shanley said Reebok is "in the right place, at the right time, with the right styles and they're really benefiting from it. Their gains are coming primarily at the expense of Adidas" (REUTERS, 11/2). DROP AT ADIDAS: Meanwhile, adidas Salomon reported a "sharp drop" in profits for the nine-month period ending September 30, but "offered investors some positive news by forecasting an improvement in its performance" in the U.S. market by 2001. Net profits for the period fell 22% to $150M, while sales rose 7%. adidas said that sales of its Salomon and TaylorMade Golf brands "should see double-digit growth" in 2000 and "compensate for weakness" in North America and "negative currency effects." adidas also said that it "would boost" its U.S. market share in the apparel and footwear category to 20% from its current 12% (FINANCIAL TIMES, 11/3). The company did note that future orders for its sports shoes were up 17% (FT MARKETWATCH, 11/2).