New Delhi: Sportswear retailer Reebok India reported a net profit of Rs. ₹4.9 crore for the year ended March 31, 2021, down 93% from the year-ago period, on account of lower sales, according to financial data obtained by business intelligence platform, Toffler. The company had made a profit of 6.8 crore in the same period a year ago.
Revenue down 26% during FY 2020-21 ₹321 crores year after year. The total expenses of the company for the financial year stood as ₹315 crores.
Financial apparel shows the impact of Covid-19 on retail. Repeated lockdowns and restrictions on the hours of operation of shops affected the sales of clothing and footwear during the last financial year.
Meanwhile, demand also plummeted as consumers spent less on discretionary goods.
“In view of the pandemic related to Covid- 19, which has affected the normal business of the Company through interruption of store operations, supply chain disruption, closure/closure of warehousing facilities etc. The company has made a detailed assessment of the recovery and valuation of its assets, plant and equipment, inventory, receivables and other current assets as on the balance sheet date and on the basis of the valuation, it 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 bought Reebok in 2006.
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