Well-known sportswear retailer Reebok India reported a net profit of Rs. 4.9 crore for the year ended 31 March 2021.
According to financial data accessed by business intelligence platform Tofler and media reports, this is 93 per cent down from the year-ago period. Last year, the company reported a profit of Rs. 6.8 crore.
German sportswear retailer adidas had bought Reebok in 2006. Notably, earlier this year adidas had announced that it had entered into a definitive agreement to sell Reebok to Authentic Brands Group (ABG) for a total consideration of up to € 2.1 billion.
Reebok India’s revenues during the financial year 2020-21 declined 26 per cent to Rs. 321 crore year on year, while total expenses for the fiscal stood at Rs. 315 crore.
The financials reflect the impact of COVID-19 on apparel retail. Frequent lockdowns and restrictions on operating hours of stores impacted sales of clothing and footwear through most of last fiscal. The demand also shrunk as consumers spent less on discretionary goods.
The company said, “In view of the pandemic related to COVID- 19, which has impacted the normal business of the company by way of interruption in store operations of franchise/wholesale partners, supply chain disruption, closure/lockdown of warehousing facilities, etc., during the lockdown period, the company has made detailed assessments of the recoverability and values of its assets comprising property, plant and equipment, inventories, receivables and other current assets.
