Reebok, World Cup Costs, Kick Adidas Into Red
HERZOGENAURACH - The world's second-largest sporting-goods maker, Adidas-Salomon, posted a fourth-quarter loss, citing the cost of ingesting Reebok International [WAMN: 26-Jan-06] and advance marketing costs related to the World Cup soccer tournament to be held in Germany this summer.
The net loss was €4 million ($4.76m; £2.72m) compared year-on-year with net profit of €20m. Sales rose 27% to €1.52 billion.
Adidas' $3.8 billion acquisition of Reebok in January doubled its share of the US market and narrowed the gap with larger American rival Nike.