Blog: A rocky road for Reebok
Leonie Barrie | 6 March 2008
Despite a stellar performance from Adidas over the past year, Reebok continues to be a something of a millstone around the Group’s neck. The fourth quarter results are particularly telling: while sales of the Adidas brand rose 20% to EUR1.65bn, Reebok’s slipped 12% to EUR567m.
Other pointers confirm there are still many problems that still need to be sorted out. The order backlog – a key indicator of future sales growth – rose to 17% for the Adidas brand in the fourth quarter, its highest level in nearly a decade, with orders linked to demand from this year’s 2008 European soccer championship.
But order backlogs for Reebok fell by 8% on lower demand from mall-based retailers in the US and Canada – and are likely to keep falling for the next six to nine months the company said.
Adidas says the consolidation of Reebok has helped achieve cost savings of EUR20m. But the departure of Reebok president and CEO Paul Harrington today suggests it expects more from the brand than is presently being delivered – and that all eyes will be watching Uli Becker, currently Reebok's chief marketing officer, when he takes over as the division's new chief executive.
Fresh from their disappointment at seeing the Trans-Pacific Partnership (TPP) free trade deal abandoned last month with an executive order by President Donald Trump, the US apparel and footwear sector...
With the ultimate aim of ensuring all the cotton in its products is sourced sustainably, value clothing retailer Primark is adamant that having a business model focused on offering the lowest prices o...
Last week we marked the inauguration of Donald Trump as the 45th president of the United States by taking a closer look at what's at stake for the textile and apparel trade – especially his promises t...
Continuing our look at what lies ahead for the apparel industry and its supply chain in 2017, the panel of industry experts consulted by just-style last week tackled likely shifts in the sourcing land...
- China leads US apparel sources with falling prices
- Hard hit Turkish industry is not knocked out
- Vietnam grows share of US apparel imports in 2016
- "Power of the many" drives change at Otto Group
- US apparel sector braces for potential cost hikes
- US Q4 in brief – Kohl's, L Brands
- Bangladesh crackdown has cost garment sector $100m
- Adidas and Burberry recognised for sustainability
- Macy's will "do the right thing", says Lundgren
- VF Corp sees Q4 and FY earnings tumble
- When Things Go Wrong - A Practical Guide to Managing Common Problems in Apparel Sourcing
- Outdoor performance apparel 2016: A broader perspective
- Technical textile markets: product developments and innovations, December 2016
- Southeast Asia strategic sourcing review – a focus on Cambodia, Vietnam and Myanmar
- Global market review of lingerie – forecasts to 2022