The world's biggest
maker of athletic shoes and clothes said Thursday that it plans to sell two of
its brands Umbro soccer cog and Cole Haan shoes and accessories to cut costs
and focus on its namesake brand.
The company says more possible
lies in its Nike products along with its Jordan, Converse and Hurley brands,
which it says have "unique consumer relationships" that balance the
Nike brand.
"Divesting of
Umbro and Cole Haan will permit us to focus our capital on the uppermost potential
opportunities for Nike, Inc., to continue to drive sustainable, gainful growth
for our shareholders," said CEO Mark Parker.
Strong demand for
Nike's shoes and clothes has helped the corporation charge past many rivals.
But, like most consumer product makers, Nike Inc. faces rising costs for wrapping,
fuel and other raw materials.
It newly launched two
high-profile lines: FlyKnit lightweight shoes and Nike+ training software and
gear.
Nike spokesman Charlie
Brooks said Nike doesn't have any buyers lined up but hopes to total the sales
by the end of May 2013, when the company's fiscal 2013 concludes.
Cole Haan traces its
roots to Chicago in 1928, when it was building flapper friendly leather shoes.
Its current personification as a purveyor of men's and women's leather shoes
and bags based in Yarmouth, Maine, began in 1975. Nike acquired the product in
1988 in a deal worth about $95 million at the time.
Umbro was founded in
1924 in Manchester in the united realm as one of the first makers of soccer
gear. Today, it also makes soccer garments and shoes, and it outfits many
European and North and South American soccer teams. Nike acquired Umbro in 2009
for $582 million.
Both brands have newly
weighed on Nike's profit margin the amount of each dollar in proceeds that a
company really keeps. In its most recent periodical conference call, the
company said revenue augmented at Umbro, Hurley and Cole Haan, but their productivity
fell.
Categories:
Nike Shoes,
Nike Umbro and Cole Haan
