26th October 2021, Mumbai:
Reebok India’s net profit is down 93 percent from the year-ago period. The main reason is lower sales. Revenues during the financial year 2020-21 declined 26 percent.
The company’s total expenses for the fiscal stood as Rs 315 crores. The financials reflect the impact of Covid-19 on apparel retail. Frequent lockdowns and restrictions on operating hours of stores impacted sales of clothing and footwear through most of last fiscal. Meanwhile, demand also shrunk as consumers spent less on discretionary goods.
With the pandemic impacting normal business by way of interruption in-store operations of franchise/wholesale partners, supply chain disruption, closure/lockdown of warehousing facilities during the lockdown, the company made detailed assessments of the recoverability and carrying values of its assets comprising property, plant and equipment, inventories, receivables, and other current assets as at the balance sheet date and on the basis of evaluation and concluded that no material adjustments are required in the financial statements.
Earlier this year, German sportswear retailer Adidas announced it has entered into a definitive agreement to sell Reebok to Authentic Brands Group (ABG). Adidas had bought Reebok in 2006.