Reebok profit surges as international sales take off
Profit surged at Reebok in the first full year since being acquired by Authentic Brands, it has been revealed.
The Cheshire-headquartered group has posted a pre-tax profit of $176.8m (£147m) for 2023 while its turnover totalled $276.4m.
The results, revealed in newly-filed accounts with Companies House, were filed after the 31 September deadline.
The new figures compare to the ten-month period to the end of 2022, the year in which Reebok was acquired.
In that period, the brand’s pre-tax profit totalled $92.1m, while its turnover stood at $206.1m.
In 2023, Reebok generated UK sales of $20.5m, $144.1m in the USA and $111.4m in the rest of the world.
Those figures compare to the UK sales of $11.1m, $117.1m in the USA and $77.7m in the rest of the world in the prior 10 months to the end of 2022.
Reebok lowers costs to increase profit
A statement signed off by the board said: “Following the initial transition period to the trading arrangements of the Authentic Brands Group, with its external retail operating partners, profitability has been further boosted by reduced marketing and other business overheads together with an increased number of licenses with strong minimum contractural amounts.
“This is expected to continue to enhance profits and provide the group with significant cash inflows to support the ongoing operating business, which shows the strength of the Reebok brand intangible asset held by the group.”
Authentic Brands completed its acquisition of the company from Adidas in March 2022.
At the time, Jamie Salter, founder, chairman and CEO of Authentic Brands said: “The Reebok team has done an incredible job of cementing Reebok’s place in the minds and hearts of consumers.
“Through ABG’s operating model, Reebok will have the ability to evolve and embrace its iconic creativity, quality and innovation. It’s time to let Reebok be Reebok.”