ABG Announces SPARC Will Take on Operations For Reebok In the U.S.; Will Keep Boston Headquarters as Global Hub Of Design and Innovation
New Slate of Strategic Operating Partners Announced for Key Regions Around the World
New York, NY – Authentic Brands Group (ABG) is setting the pace for the future of Reebok. The global brand development, marketing and entertainment company has signed a long-term strategic partnership with SPARC Group (SPARC) to become the core licensee and operating partner for Reebok in the U.S. SPARC, a leading retail enterprise, which brings unparalleled capabilities in brand building, technical design, specialized distribution and marketing, will oversee sourcing, manufacturing, branded retail stores, e-commerce operations and wholesale distribution for Reebok in the U.S. Categories include footwear for men, women and kids as well as lifestyle and active apparel for men and women.
The addition of Reebok will increase SPARC’s store count to 1,600 doors, grow its e-commerce platform to more than $1 billion and bring its total retail sales to approximately $5.5 billion. Reebok itself is expected to double its annual revenue to $8-10 billion billion over the next three to five years, CEO Jamie Salter told CNBC. At the same time, ABG has put its planned IPO “on hold for a couple years,” Salter said.
SPARC will also serve as the global hub for the newly created Reebok Design Group (RDG). RDG will be responsible for all design, development, innovation and creative services to partners around the world and will ensure the brand’s history, vision and ethos continue to be preserved. All of these functions will continue to run out of Reebok’s global headquarters in Boston, MA, led by President Matt O’Toole and SVP and GM, Product, Todd Krinsky.
“Reebok is the most monumental acquisition in ABG’s history,” Salter said. “Because of the reach of Reebok’s business around the globe, an essential part of the strategy was to maintain the brand hub that supports and guides a global partner network to preserve and nurture the brand’s heartbeat and unmistakable DNA. Starting with SPARC for the U.S., we are assembling a network of strategic operating partners around the world who are committed to supporting the brand’s innovation, integrity and values. We are excited about the expertise that RDG will continue to infuse into the future of Reebok.”
“These are exciting times for SPARC. We are pleased to welcome the Reebok team and bring one of the world’s most iconic athletic brands into the portfolio. This strategic agreement adds footwear as a transformative new vertical to SPARC’s expanding brand platform, with pillars including Lifestyle and Fashion, comprised of Nautica, Aéropostale, Lucky Brand and Forever 21; American Luxury, which boasts Brooks Brothers; and Sports and Outdoor, newly anchored by Reebok and complemented by Eddie Bauer,” said Marc Miller, CEO of SPARC.
“We are thrilled to continue Reebok’s journey under the ownership of ABG. And we’re equally excited for the drive and support that SPARC will deliver to the Reebok brand. Both partners bring significant expertise in global brand building, marketing and retail,” said Matt O’Toole, President of Reebok. “Together, we intend to position Reebok for growth and to compete and win in a digitally driven, omnichannel world.”
In addition to securing Reebok’s U.S. operation, ABG has also signed leading partners for key regions, including The Falic Group for Latin America excluding Mexico, Brazil and Argentina, Accent Group Limited for Australia and New Zealand and MGS for Israel.
The Falic Group, a premier brand platform with more than a decade of expertise spanning fashion, luxury and licensing in Latin America, will oversee Reebok’s retail stores, e-commerce operations and wholesale distribution in the region. Accent Group comes on board as Reebok’s new core licensee and operating partner in Australia and New Zealand. The company announced earlier this month that it plans to grow the brand through its existing wholesale accounts, direct online sales and multi-brand retail banners. MGS, which has been Reebok’s core operating partner in Israel for two decades, has signed a new partnership with ABG to continue its commitment to strengthening and growing the brand across all channels in the region.
SPARC, The Falic Group, Accent Group Limited and MGS will partner with RDG to evolve the product design, development, innovation and creative direction for each region while maintaining a unified brand voice and vision.
“Reebok is a remarkable brand and onboarding it into ABG’s platform is being made possible through a collaborative effort by SPARC, RDG and our new regional partners,” said Nick Woodhouse, President and CMO of ABG. “We look forward to working together to position the brand for long-term growth.”
These agreements become effective upon the completed transfer of ownership of the Reebok brand from adidas to ABG. The deal is expected to close in the first quarter of 2022.
About Authentic Brands Group
Authentic Brands Group (ABG) is a brand development, marketing and entertainment company, which owns a portfolio of global media, entertainment and lifestyle brands. Headquartered in New York City, ABG elevates and builds the long-term value of more than 30 consumer brands and properties by partnering with best-in-class manufacturers, wholesalers and retailers. Its brands have a global retail footprint across the luxury, specialty, department store, mid-tier, mass and e-commerce channels and in more than 6,300* freestanding stores and shop-in-shops around the world.
ABG is committed to transforming brands by delivering compelling product, content, business and immersive experiences. It creates and activates original marketing strategies to drive the success of its brands across all consumer touchpoints, platforms and emerging media. ABG’s portfolio of iconic and world-renowned brands includes Marilyn Monroe®, Elvis Presley®, Muhammad Ali®, Shaquille O’Neal®, Dr. J®, Greg Norman®, Neil Lane®, Thalia®, Sports Illustrated®, Reebok®*, Eddie Bauer®, Spyder®, Volcom®, Airwalk®, Nautica®, Izod®, Forever 21®, Aéropostale®, Juicy Couture®, Vince Camuto®, Lucky Brand®, Nine West®, Jones New York®, Frederick’s of Hollywood®, Adrienne Vittadini®, Van Heusen®, Arrow®, Tretorn®, Tapout®, Prince®, Vision Street Wear®, Brooks Brothers®, Barneys New York®, Judith Leiber®, Herve Leger®, Frye®, Hickey Freeman®, Hart Schaffner Marx®, Thomasville®, Drexel® and Henredon®. Pending acquisition in Q1 2022*. For more information, visit authenticbrands.com. Follow ABG on Twitter, LinkedIn and Instagram.
Reebok is a pioneer in the sporting goods industry with a rich and storied fitness heritage. The brand has deep ties to professional sports and pop culture and continues striving to deliver on its mission of providing each and every athlete, from professionals to enthusiasts, with the opportunity, products and inspiration to reach their full potential. Reebok connects with the fitness consumer wherever they are and however they choose to stay fit – whether it’s functional training, running, combat training, walking, dance, yoga or aerobics. The Classics leverages the brand’s fitness heritage and represents the roots of the brand in the sports lifestyle market.