Nike Inc. is trimming its portfolio to focus on its four core athletic brands.
The company said Thursday it will sell the Cole Haan and Umbro brands. The move will allow it to focus on growing the Nike, Jordan, Converse and Hurley divisions. The group will begin the divestment process immediately, and it expects to complete the sales by the end of the fiscal year on May 31, 2013.
Mark Parker, president and chief executive officer, said, “We see tremendous opportunity to accelerate profitable growth around the world by continuing to deliver innovations and inspire consumers through the Nike brand.”
Parker added that the company also saw “significant potential” in the Jordan, Converse and Hurley brands, which he said have “unique consumer relationships that complement the Nike brand.”
Cole Haan was acquired by Nike in 1988. The brand specializes in casual and dress leather footwear, bags and outerwear. But the company has suffered ups and downs under Nike, bringing in a string of ceo’s to build the brand in the U.S. and internationally with mixed success. While Cole Haan has adopted Nike Air technology for many of its shoes, and worked with Maria Sharapova on a collection, it remained a small part of the overall Nike business.
British soccer brand Umbro was acquired in 2008 and was trumpeted at the time by Nike as a move to build its global business in the key category.
In its last conference call to Wall Street on March 22 when the firm posted third-quarter earnings, Donald W. Blair, chief financial officer and vice president of Nike Inc., said earnings before interest and taxes for its other-businesses category rose 2 percent due to solid profit growth at Converse and Nike Gold, although that was mostly offset by losses at Umbro, Hurley and Cole Haan. He noted that while revenues have risen for the smaller business, profitability was challenged primarily by lower gross margins. He also noted that as the company was heading into the fourth quarter, it expected strong revenue growth driven “largely by the strength of the Nike brand and Converse.”
For the third quarter ended Feb. 29, the Beaverton, Ore.-based athletic footwear and apparel giant expanded net income 7.1 percent to $560 million, or $1.20 a diluted share, above the $1.17 analysts’ estimate as well as the year-ago mark of $523 million, or $1.08. Total revenues were up 15.1 percent to $5.85 billion from $5.08 billion, as Nike brand footwear sales rose 16.7 percent to $3.35 billion, and apparel volume was up 12.2 percent to $1.46 billion.
For the nine months, net income rose 8.8 percent to $1.67 billion, or $3.56 a diluted share, as revenues added 17 percent to hit $17.66 billion.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty