Shoe industry ‘not recession-proof’ says Reebok chairman
Paul Fireman, the chairman of Reebok International Ltd, the US’s second-largest footwear company, said last week that he does not consider the shoe industry to be recession-proof. Nevertheless, he expects his company to record steady growth against the background of growing economic uncertainty.
Fireman said he was ‘comfortable’ with Wall Street earnings estimates for the first quarter ended March 31 2001, which predicted earnings per share of 64 cents. "Nothing out there scares me," said Fireman, referring to analysts' estimates. "Some people claim our industry is recession-proof. No industry is recession proof. We're going to have steady growth, but nothing spectacular."
Fireman reported a "clean" inventory for the company, in contrast to the circumstances that currently prevail at Nike Inc (See leatherbiz.com story ‘Nike Profits Down 33%’ 26.03.01) With the announcement, Reebok shares climbed by 8 cents to $23.30 on the New York Stock Exchange.
