The reebok outlet Company’s Asia Pacific region performed well during 2004 with double digit sales increases in Japan and India . For the year, in constant dollars, international sales increased in the training, soccer, running, walking and kids footwear categories, but decreased in the Classics category. Rockport’s sales for 2004 were $377.6 million, an increase of 1.5% from sales of $372.0 million in 2003. Domestic sales for the Rockport Brand decreased 4.4%, whereas international sales increased 12.7% as compared to 2003. Currency has favorably impacted these comparisons. On a constant dollar basis, international sales of the Rockport Brand increased 4.6%.
International revenues accounted for approximately 38.2% of Rockport’s sales in 2004, as compared to 34.4% in 2003. Sales of the reebok outlet Company’s other brands, Ralph Lauren Footwear and The Greg Norman Collection, were $209.8 million in 2004, an increase of 6.6% from sales of $196.8 million in 2003. The Company’s overall gross margin was 39.6% of sales for 2004, which is an increase of 120 basis points when compared with the Company’s gross margin of 38.4% for 2003. Approximately one-third of the margin improvement was generated in the U.S. with the balance of the improvement from the Company’s international business.

Primarily all of the international margin improvement resulted from the strengthening of exchange rates in many of the reebok outletinternational markets. Selling, general and administrative expenses for 2004 were $1.204 billion, or 31.8% of sales, an increase of $117.8 million when compared to $1.086 billion, or 31.2% of sales, for 2003. These comparisons were impacted by the inclusion of The reebok outlet Company and by fluctuations in foreign currency. The inclusion of The Hockey Company in 2004 resulted in approximately 31% of the increase and currency fluctuations resulted in approximately 28% of the increase.










