Reebok 2008 Annual Report Download - page 19

Reebok did not deliver on your initial expectations for 2008 and your guidance
is for a stable sales development in 2009. What have you changed in the past
12 months that gives you this confi dence?
2008 was a challenging year for Reebok and I am disappointed not to be able
to show the fi nancial improvements we anticipated at the beginning of the year.
Although we continued to make progress expanding the brand in international
markets, declines in particular in the USA, UK and Japan led to a currency-neutral
sales decrease of 2 %. While tough conditions in these markets burdened Reebok’s
performance, we have to acknowledge that our clean-up efforts of old Reebok
products have taken longer than we originally expected. But the Reebok brand is
moving in the right direction.
After several years of hard work and refi ning our business in Europe and
Latin America we are able to move forward with the implementation of joint oper-
ating structures for adidas and Reebok in these markets. This organisational
format which is proving so successful in Asia and Russia will ensure we actively
leverage the Group’s strengths with customers and in back-offi ce functions. We
also fi ne-tuned Reebok’s global brand priorities. As I told you last year, our biggest
test is to make the Reebok brand more relevant for consumers. In this respect
Reebok has developed a clear roadmap for its key businesses going forward:
Own Women’s Fitness, Challenge Men’s Sport and Revive Classics. And here
I believe we are now in a position to really show the consumer what Reebok is
all about. Take for example our new partnership with Cirque du Soleil. Together,
we have just launched a truly groundbreaking and game-changing initiative
“JUKARI Fit to Fly™”. This is an entirely new workout experience, inspired by the
imaginative, theatrical and physically demanding artistry of Cirque du Soleil. On
the product front, there is also a striking improvement in our 2009 collections. As
you know, innovation and design are critical for capturing consumer attention.
Products must stand out. And therefore innovation must be something tan-
gible and unique and easy to understand. Products such as the EasyTone™ and
SelectRide™ fi t that category.
With all this in mind, I can only see the quality of the Reebok business
improving in 2009. However, let’s make no mistake: The year ahead will not
be easy. We still need to deal with some issues, in particular maintaining our
discipline in getting distribution for the brand right. But I am confi dent that our
dedication and passion will take us another step further in 2009.
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