Reebok is a company that has been on the radar since the late-1990s. The brand’s collaborations with Shaquille O’Neal and the National Football League have cemented them as a household name.
They have enjoyed a considerably good business run up until the NFL decided not to renew its contract, and to partner up with Nike instead. Reebok was also hit further in the market due to the rise of new competitors such as Lululemon and Under Armour.
The industry giant, Adidas, had acquired Reebok back in 2006 for a whopping $3.8 billion. They launched programs and business deals which ensured the brand its steady profits, causing them to keep growing in 2019. Some of their notable celebrity-backed launches include that with rapper Cardi-B, and fashion icon Victoria Beckham. However, it can be said that Reebok’s revenues fell greatly, as evidenced by their recently announced third-quarter earnings.
On the other hand, Adidas has been doing relatively better, even though the brand also experienced a drop in revenue. Their successful collaborations with Kanye West’s Yeezy, and Beyonce’s Ivy Park, has made Adidas a go-to for teens and adults alike. Reebok has underperformed, and this may cause Adidas to ax the brand so that they can focus on more lucrative launches and collections for themselves.
You might say that all of this is proceeding as expected – business is business after all.
By Sophie Jocson