REEBOK AIM: APPAREL DELIVERING 20% OF SALES
Byline: Valerie Seckler
NEW YORK — Reebok International Ltd. is eyeing apparel sales of $420 million for 1994, and is aiming to get 18 to 20 percent of its revenue from the category within the next three to five years.
“Right now it is at that level in our international business, but in the U.S. it’s under 10 percent of our sales,” said Paul Duncan, chief financial officer. Duncan was interviewed by telephone from Reebok’s Stoughton, Mass., headquarters, following the release last week of second-quarter figures.
Sales of Reebok brand apparel in the U.S. shot up 21.9 percent to $34.6 million in the second quarter ended June 30, from $28.4 million a year earlier. Second-quarter sales figures for Reebok brand apparel outside the U.S. weren’t available.
For fiscal 1993, Reebok’s apparel sales exceeded $350 million, with about $250 million of the revenue coming from outside the U.S. That gave apparel a 12 percent share of Reebok’s $2.9 billion in 1993 sales. If Reebok had hit its 20 percent goal last year, for example, it would have generated apparel sales of $580 million.
Duncan was unable to provide a 1994 year-to-date figure for apparel sales here or abroad.
But he noted, “Apparel sales are trending up 20 percent for ’94 over ’93,” which would push year-end sales over the $420 million mark.
In addition to its Reebok brand, Tinley, Reebok’s high-performance line of apparel, generates annual revenue of around $8 million to $9 million, Duncan added.
The company manufactures Avia activewear and Greg Norman golf apparel. Sales of the Greg Norman line are included in the company’s Reebok-brand apparel revenue for the U.S., because as yet it remains a Reebok sub-brand, like the Above the Rim apparel collection.
However, Duncan said Reebok may market its Greg Norman line as a stand-alone collection if it continues its rapid growth pace.
Reebok does not break out operating results within its divisions.
Looking ahead, the executive noted Reebok plans to introduce a Boks apparel line and to reintroduce Rockport apparel. Both are shoe businesses of the firm. Few details were available, but Duncan said a Rockport collection featuring “outdoorsy apparel like L.L. Bean’s” is set to be launched next spring.
Overall, the athletic footwear giant’s sales swelled 18.1 percent in the second quarter to $776.8 million. Net income for the three months pushed ahead 24.3 percent to $51 million, or 60 cents a share.
For the first half, earnings grew 7.4 percent to $116.8 million, or $1.38 a share, on a 10.2 percent gain in sales to $1.63 billion.
— Fairchild News Service