Reebok Beats The Street With Q4 Earnings Report
MA-based Reebok reported yesterday that Q4 earnings fell 16% "in a tough retail environment," but the company "still managed to boost sales and top Wall Street expectations," according to Greg Gatlin of the BOSTON HERALD. Reebok is "getting major yardage" from its apparel licensing agreements with the NFL and NBA. Sales of NFL-licensed team shirts and other merchandise "helped offset a drop in business from department stores, which have struggled in a weaker economy." But sales of Rockport and Ralph Lauren footwear were off. Reebok reported that Q4 net income dropped 16% to $5.1M, or $0.09 a share compared to $6.2M, or $0.11 a share in Q4 '00. Analysts expected earnings of $0.05 a share. Operating profits for all of '01 increased 27%. Sales rose 7% to $665M from $623M in the year-ago period. The company expects earnings growth this year to be 10-15%, "somewhat lower than its goal." But Reebok CFO Ken Watchmaker said the increased visibility Reebok is getting from pro football and basketball players wearing its shirts on the field is sending "a very positive message" to consumers (BOSTON HERALD, 1/31). U.S. apparel sales rose 89% to $113.1M and int'l sales of Reebok-branded products increased 7% to $253.4M (WALL ST. JOURNAL, 1/31).
ON THE MARKET: Shares of Reebok closed yesterday at $29.55. At presstime, share of Reebok are trading at $28.70, down 3% from yesterday's close (THE DAILY).
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