Word: reeboks
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...shoe buyers, haven't forsaken their hightops. The new Air Jordan XIIIs are a hit. But kids have extended their shoe buying over a wider range of styles: Vans, Airwalks, Skechers and Lugz for the skateboard dudes and the hip-hop crowd; outdoor brands such as Timberland for everyone. Reebok estimates that 15% to 20% of the sneaker business went brown last year...
Better competition. Once blessed by rivals who couldn't tie their own shoes without risking injury, Nike faces a resurgent Adidas, whose sales increased 92% in North America in the last quarter. True, Reebok could still screw up a one-man 100-m dash, but it is pumping fresh money into shoe technology and advertising. New Balance expects sales to rise 25% this year, and fashion brands such as Tommy Hilfiger are breaking out sneaker lines...
...American" by wearing inconspicuous non-brand name American clothing. However, Karen Bradbury, a coordinator of the program, said that this information is already "out-of-date." "Now Americans are the worst-dressed people in this city," she said. A Russian is just as likely to be wearing a Reebok hat or a Starter jacket as an American. Probably more likely; who wears Starter jackets in America anymore...
...heavyweight advertisers are headed in different directions, including Domino's Pizza, Delta Air Lines, Reebok and the ABC television network. Account changes are rippling at a record pace through the U.S. advertising industry, which handled $52 billion in domestic media billings last year. (Billings measure clients' ad spending, on which agencies take a cut as fees; 15% used to be standard, although the rate varies.) The U.S. Army, beset by sex scandals and an increasingly hard time recruiting new soldiers, is putting its $80 million account--now held by Young & Rubicam--up for review. That couldn't be more fitting...
Daniel Kadlec questioned why Reebok appeared on the California Public Employees' Retirement System's list of laggard companies [MONEY IN MOTION, Feb. 24]. He overlooked 12 reasons: the members of the Reebok board. The sneaker company's "lean years" landed it on the CalPERS list, and rightfully so: $100 invested in its stock in 1991 was worth only $122 five years later, vs. $232 for industry competitors. Sure, Reebok's stock has seen the light in the past 10 months, but this glitch hardly gives CalPERS assurance of the company's future long-term success. Our putting Reebok...