Nike set to sell off Umbro brand- 1 Jun 2012 00:00:00
Nike Inc has announced it intends to sell its Umbro and Cole Haan brands to focus on driving growth through its namesake, as well as other athletic brands including Jordan, Converse and Hurley.
Nike chief executive Mark Parker told media that the move would allow the brand to focus its resources on the highest-potential opportunities to continue to drive sustainable, profitable growth for shareholders.
Cole Haan, which specialises in casual and dress leather shoes and bags, was bought by Nike in 1988, with Umbro acquired in 2008.
The divestiture process will begin immediately, and is expected be completed by June 2013.
In March Nike reported an increase in its fiscal third-quarter earnings on worldwide sales, helped by product launches including the Nike Free running line and Nike+ FuelBand.
The potential price tags of the brands, nor any potential buyers, have been revealed.