Reebok Reports $3.4M 1st Q Loss
Apr. 23, 1998
STOUGHTON, Mass. (AP) _ Two months after saying it would cut 10 percent of its jobs, Reebok International Ltd. on Wednesday reported a first-quarter loss of $3.4 million.
The loss, which works out to 6 cents per diluted share, compares with earnings of $40.2 million, or 69 cents a share, for the same period last year. The shoe and athletic apparel company is based in the Boston suburb of Stoughton.
Revenues fell to $880 million from $930 million.
Reebok said that demand for athletic shoes _ especially high-end, high-profit models _ has slackened recently and hurt sales across the industry.
The company took a charge of $23.7 million to pay for a restructuring plan in which at least 10 percent of the company's 5,000 jobs will be eliminated.
The results were announced late in the trading day. Reebok's shares fell 87 1/2 cents to close at $31.56 1/4 on the New York Stock Exchange.