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Current Situation
Overall, the current situation of Reebok International is satisfactory. Reebok reports improved third quarter 2002 earnings, which have given the company encouragement to proceed with their long-term planning for 2003. Reebok currently maintains a position in the top three athletic shoe brands, and plans to continue expanding its product line and improving its brand image. Accounts receivable at December 31, 2002, increased by $38.4 million December 31, 2001, an increase of 10.0% as a result of increased sales in the fourth quarter of 2002 as compared to 2001, however days sales outstanding in accounts receivable decreased by 5 days. Despite the current economic situation domestically and abroad, Reebok expects to see improvements in 2003 through strategic marketing, financial assessment, and increased social responsibility.
Financial Performance
The company's overall gross margin was 36.7% of sales for 2002, as compared to 37.9% for 2000, a decrease of 120 basis points. U.S. apparel sales of the Reebok Brand increased by 37.8% to 461.2 million from $334.7 million in 2001. For the year ended December 31, 2002, total marketing expenses for the Reebok Brand approximated 10.7% of net sales, as compared to 10.5% during 2001. Sales of the other brands were $112.4 million in the first nine months of 2002, a decrease of 8.4% from sales of 122.7 million in the first nine months of 2001. However, selling, general, and administrative expenses for the first nine months of 2002 were $708.8 million, a 2.4% increase when compared to $692.2 million the previous year.
Strategic Posture
Developed in 1995, the Reebok Charter establishes the mission of the company a ...