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Reebok Pumps Up Margins
By David Meier
July 22, 2005

Motley Fool Stock Advisor recommendation Reebok (NYSE: RBK) released earnings yesterday and gave investors a good idea of the company's future plans. (Hint: They're self-inflating.)

We'll cover the financials first. Sales were up 8% for the quarter compared to a year ago, and up 6% in constant dollars. Gross margin rose 150 basis points, allowing the company to increase SG&A spending by 10%; Reebok rolled out its largest marketing and advertising campaign in the last ten years. Despite that extra expenditure, operating margins still increased by 70 basis points, indicating that the dollars were spent Foolishly...
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