Reebok India profit down 93% in FY211 min read . Updated: 23 Oct 2021, 05:21 PM IST
- Revenues during the financial year 2020-21 declined 26% to ₹321 crore year on year. The company’s total expenses for the fiscal stood as ₹315 crore
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New Delhi: Sportswear retailer Reebok India reported a net profit of ₹4.9 crore for the year ended 31 March 2021, down 93% from the year-ago period, on account of lower sales, according to financial data accessed by business intelligence platform, Tofler. In the year-ago period, the company reported a profit of 6.8 crore.
Revenues during the financial year 2020-21 declined 26% to ₹321 crore year on year. The company’s total expenses for the fiscal stood as ₹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.
Meanwhile, demand also shrunk as consumers spent less on discretionary goods.
“In view of the pandemic relating 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 carrying values of its assets comprising property, plant and equipment, inventories, receivables and other current assets as at the balance sheet date and on the basis of evaluation, has concluded that no material adjustments are required in the financial statements," the company said.
Earlier this year, German sportswear retailer Adidas announced that it has entered into a definitive agreement to sell Reebok to Authentic Brands Group (ABG) for a total consideration of up to € 2.1 billion. Adidas had bought Reebok in 2006.
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