REEBOK INTERNATIONAL LIMITED - PowerPoint PPT Presentation

Loading...

PPT – REEBOK INTERNATIONAL LIMITED PowerPoint presentation | free to view - id: 2d127-YzYzN



Loading


The Adobe Flash plugin is needed to view this content

Get the plugin now

View by Category
About This Presentation
Title:

REEBOK INTERNATIONAL LIMITED

Description:

... of street-inspired footwear and apparel hook-ups designed for the ... Originally a golf apparel line, the Greg Norman Collection has grown its line of ... – PowerPoint PPT presentation

Number of Views:768
Avg rating:3.0/5.0
Slides: 39
Provided by: shawnb4
Category:

less

Write a Comment
User Comments (0)
Transcript and Presenter's Notes

Title: REEBOK INTERNATIONAL LIMITED


1
REEBOK INTERNATIONAL LIMITED
2
Presented By Eduardo Garza Lily Hsu Resa
Lawrence Travis Klecker
3
Mission Statement
  • Our purpose is to ignite a passion for winning,
    to do the extraordinary, and to capture the
    customers heart and mind.
  • We make a difference
  • To our Customers
  • To our employees
  • To our shareholders
  • To our athletes
  • And to the world in which we live

4
REEBOK HISTORY
  • 1890s
  • Reebok is started by Joseph William Foster in
    England. The original mission of the company was
    to enhance performance in long-distance track
    events by improving equipment.
  • 1958
  • Two of the founders grandsons started a
    companion company that came to be known as
    Reebok, named for an African gazelle.
  • 1979
  • Reebok USA., Ltd was formed by Paul Fireman. The
    original marketing strategy was aimed at prestige
    and at high prices.

5
REEBOK HISTORY Cont.
  • 2002
  • The newest line, RBK, was introduced this year
    which consisted of a collection of
    street-inspired footwear and apparel hook-ups
    designed for the young man and woman who demand
    and expect the style of their gear to reflect the
    attitude of their lives - cool and edgy,
    authentic and inspirational.
  • 2005
  • Reebok Brand introduced its comprehensive new
    advertising campaign, I Am What I Am. This
    campaign, which celebrates authenticity and
    individuality in sports and life, has been the
    cornerstone of Reeboks positioning and will flow
    through the marketing of each segment.

6
BOARD OF DIRECTORS

  • Geoffrey Nunes
  • Retired Senior Vice President and General
    CounselMillipore Corporation
  • Dorothy Puhy
  • Executive Vice President Chief Financial
    OfficerDana-Farber Cancer Institute
  • Thomas M. Ryan
  • Chairman of the Board, President, and Chief
    Executive OfficerCVS Corporation
  • Barry Tatelman
  • Chief Executive OfficerJordan's Furniture
  • Paul B. Fireman
  • Chairman of the Board and Chief Executive
    Officer
  • Norman Axelrod
  • Chairman of the Board andChief Executive
    OfficerLinens 'N Things, Inc.
  • Paul R. Duncan
  • Retired Executive Vice PresidentReebok
    International Ltd.
  • Richard G. Lesser
  • Senior Corporate Advisor and DirectorTJX
    Companies, Inc.


7
HOW THE BOARD CAN BE IMPROVED
  • According to Reebok Board Governance, the current
    standing committees of the Board are Audit, Boar
    Affairs, Management Development and Compensation,
    and Executive.
  • The Board presently has 8 members, which pursuant
    to the current by-laws may be expanded to 12
    members. After examining Reebok 8 members we came
    to the conclusion that there is not evidence that
    some of its members are related.
  • We also found that this board is widely divers in
    terms of there professional experience. Even
    though most of them have strong managerial
    experience in the apparel sector some of them
    come from other type of industries like for
    example Mr. Fireman who before joining Reebok
    directed a manufacturer of medical devices

8
OWNERSHIP INFORMATION
Reeboks 5/Insider Ownership is 11.51. It is
slightly higher then a desirable ratio. If an
inside owner were to suffer from death,
bankruptcy, or unfavorable circumstances this
could adversely affect the company.
9
UMBRELLA OF PRODUCTS
  • The Hockey Company
  • The Hockey Company, which Reebok acquired in
    June 2004, is the worlds largest designer,
    manufacturer and marketer of hockey equipment and
    related apparel. The Hockey Companys CCM, JOFA
    and KOHO brands are among the most widely
    recognized brands in hockey.
  • The Rockport Company
  • Rockport designs, develops, produces, markets
    and distributes worldwide specially engineered
    comfort footwear under the Rockport brand for men
    and women. Rockports net sales increased to
    377.6 million in 2004 from approximately 372.0
    million in 2003.
  • Greg Norman Collection
  • Originally a golf apparel line, the Greg Norman
    Collection has grown its line of sportswear to
    include products such as woven, Play Dry
    outerwear and sweaters.
  • RBK
  • Reeboks Rbk product collection features
    footwear, apparel and accessories designed to
    appeal to young, fashion-oriented consumers.

10
UMBRELLA OF PRODUCTS
  • Reebok Performance
  • Performance line includes products designed for
    basketball, running, fitness, football, baseball,
    soccer, tennis and other sports.
  • Reebok Classic
  • Classic products feature retro styling that
    reflects distinctive design elements from past
    Reebok products. During 2004 we continued to
    focus on print advertising for our Classic
    products
  • Reebok Kids
  • Reebok Kids footwear business is important to
    establishing a relationship between our Brand and
    young consumers who we can cultivate as Reebok
    customers as they grow into adulthood.

11
MARKET COMPETITORS
NIKE
  • PUMA
  • TIMBERLAND

12
SEGMENT REVENUE
13
INDUSTRY RATIOS
14
TTM Sales
15
Financial Ratios
GOOD
POOR
ABOVE AVERAGE
16
POOR
FAIR
POOR
17
FAIR
POOR
FAIR
18
ABOVE AVERAGE
FAIR
FAIR
19
FAIR
AVERAGE
FAIR
20
POOR
ABOVE AVERAGE
VERY GOOD
21
Summary of Financial Ratios
  • Growth Rates UNSATISFACTORY
  • Price Ratios UNSATISFACTORY
  • Profit Margins UNSATISFACTORY
  • Financial Condition SATISFACTORY
  • Investment Returns SATISFACTORY
  • Management Efficiency SATISFACTORY
  • Earnings Growth Rates UNSATISFACTORY

22
Company Share Information
23
Background Analysis
24
Earnings Growth Rates
REEBOKS FORECAST
25
FCFE
26
Discounted Cash Flows
27
Risk Analysis
28
CAPM Model
29
WACC
30
Capital Structure
31
Three years is a small time period to be able to
determine what model Reebok follows. Companies
are usually evaluated over a longer period time
like ten years.
32
Market Efficiency
Good News- Company
NO FORM
33
Market Efficiency
Good News- Industry
NO FORM
34
Market Efficiency
Bad News- Company
NO FORM
35
Strengths
  • Earnings Growth Rates
  • FCFE
  • WACC
  • Debt/Equity Ratio
  • Financial Condition
  • Investment Returns
  • Management Efficiency
  • History
  • TTM Sales
  • Beta ß-1.5513 for 2005

36
Weaknesses
  • Ownership
  • Growth Rates
  • Price Ratios
  • Profit Margin
  • HPR
  • Ke (cost of equity)

37
Analyst Opinion
38
Conclusion
  • Underpriced
  • set it and forget it- Buy and hold

Reebok 5 year stock price forecast
About PowerShow.com