Nike to sell Umbro and Cole Haan brands
01 June 2012
Sportswear giant Nike is set to divest its Umbro and Cole Haan brands, as it looks to focus and drive revenues across its core brand portfolio which includes Nike, Jordan, Converse and Hurley.
Nike acquired Manchester-based football brand Umbro in 2008 for $442m. Umbro is sponsor of the England football team kit but its revenues dropped to $224m last year.
New York-based Cole Haan, which specialises in leather footwear and bags, was acquired by Nike in 1988. Its last year revenues hit $518m, up 12% from the previous year. The brand operates 190 stores globally, the majority of which are in the US.
“We see tremendous opportunity to accelerate profitable growth around the world by continuing to deliver innovation and inspire consumers through the Nike brand” says Nike president and chief executive Mark Parker. “We also see significant potential in Jordan, Converse and Hurley, which have unique consumer relationships that complement the Nike Brand.”
“Divesting of Umbro and Cole Haan will allow us to focus our resources on the highest-potential opportunities for NIKE, Inc. to continue to drive sustainable, profitable growth for our shareholders,” he adds.
Last year, Nike posted revenues of $20.8bn. The process is expected to be completed by the end of Nike’s fiscal year on May 31, 2013.
Jenni Baker, London