Reebok Roars Back with Record Profits and Global Expansion

Reebok International Limited and its subsidiary RILUK IPCO Limited have recently filed their latest accounts, revealing a robust financial performance in 2024 with significant increases in both revenue and profits. RILUK IPCO, a British-registered company, manages the operational activities of the Reebok brand from its New York branch, while Reebok International serves as its holding company within the extensive portfolio of businesses owned by Authentic Brands Group.

The headline figures underscore a remarkable turnaround for a brand that was previously considered a perennial underperformer. Group profits after tax surged from $163.55 million to $179.93 million. This impressive growth, as stated by the company, was primarily fueled by expanding revenues across the global Reebok business, coupled with improved performance from licensees and strategic expansion through new partnerships.

A closer look at the financial details shows that revenue, which was entirely derived from global royalty income, climbed to $302.489 million from $276.436 million in 2023. Operating profit also saw a healthy increase, rising to $192.37 million from $176.83 million. Furthermore, the company benefited from a reduced income tax liability, paying $12.43 million compared to $13.27 million in the previous year.

Authentic Brands Group’s acquisition of Reebok from Adidas in March 2022 has played a pivotal role in this resurgence. Following the initial transition period to Authentic's trading arrangements, which involve external retail operating partners, profitability was further enhanced. This was achieved through reduced marketing and other business overheads, alongside an increased number of licenses, many of which now include strong minimum contractual amounts. This strategic approach is expected to continue boosting profits and generate substantial cash inflows for the group, with the company actively exploring new product categories for expansion.

While the recent results did not offer extensive granular detail or any indication of the current year's performance, there is optimism for continued strength despite challenging market conditions. The business has been actively forging new agreements in 2025, notably a deal announced in June with Slam Jam, a European premium lifestyle company. This partnership aims to broaden Reebok's market presence across the US, Canada, and Central and Eastern Europe.

Earlier in February, significant operational changes were also announced. Galaxy Universal was designated to take over Reebok’s footwear operations, retail stores, and e-commerce, while also spearheading the sportswear maker's global product creation, design, and sourcing efforts. Concurrently, GB Brands Europe Limited – a new joint venture formed between Galaxy and Batra Group – was appointed to manage Reebok’s operations across Europe and the UK, signaling a comprehensive restructuring for future growth.