Reebok 2006 Annual Report Download - page 21
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017
Interview with the CEO ›
How do you see 2007 shaping up from
a financial point of view?
Looking further out, what are the biggest
opportunities you intend to seize going forward?
Thank you for this interview, Herbert.
In 2007, I am confident we will build on the successes of 2006 and make further important strides towards
achieving our goals. Despite less favorable retail conditions in North America and a more selective approach
to distribution in key European markets, robust growth in emerging markets will drive a mid-single-digit
top-line increase for the year. Gross margin will expand strongly as a result of improvements at all brands,
the realization of synergies and the absence of negative accounting effects. We will invest a major portion
of these gains to strengthen our organization, accelerate brand building at Reebok and continue own-retail
expansion. Through the growth of our underlying business and disciplined balance sheet management, we
will grow earnings at a rate approaching 15%.
I am excited by the challenges but most importantly the opportunities for our Group in the next three to five
years. There is a clear momentum building at all brands that will become more visible in the second half of
2007 and beyond. As an industry leader in the emerging markets, we have a solid platform to exploit the vast
growth potential these markets have to offer. Our sponsorship of the 2008 Beijing Olympics will be just one
example of how we will take these markets by storm. The Reebok revitalization will gain momentum with
each new season of improved product, brand communication and distribution. We will achieve our integra-
tion targets of € 500 million in revenue and € 175 million in cost synergies by 2009. The Group is moving
in the right direction and I am confident we can deliver on our medium-term guidance. But this is just the
start, as far as I am concerned. With all our brands at the top of their game, we will be a formidable force in
shaping the future of our industry.