Athletic Footwear

Reebok International Ltd.

Although Reebok <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: RBK)") else Response.Write("(NYSE: RBK)") end if %> has stumbled, blowing its lead in the athletic shoe marathon in the late 1980s, the company still has a lock on 16% of the athletic footwear market. With $3.527 billion in trailing sales and rapid development of its marketing clout, Reebok may yet gain some share at the expense of the "swoosh" by continuing to pick-up loyal fans in the running and walking segment. Operating margins have contracted as a result of increased sales, general and administrative (SG&A) expenses (more specifically increased marketing expenses) needed to combat Nike in the "cool" wars. Continued margin erosion could threaten 1998 earnings estimates of $3.05 per share.

Latest Financials

Net sales in the 1997 second quarter were $841.1 million, an increase of 2.9% from 1996's second quarter net sales of $817.6 million, which included $22.6 million of sales from the company's Avia subsidiary that was sold in June 1996. Worldwide sales for the Reebok brand in the second quarter were $722.5 million, an increase of 4.8% from 1996's second quarter sales of $689.3 million.

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