By Tiffany Hsu
9:55 AM PDT, May 31, 2012
Nike Inc. is selling off its Cole Haan shoes and accessories brand and its Umbro soccer-related company in order to focus on its namesake products.
The company wants to focus on Nike gear such as its new digital FuelBand fitness tracker, as well as items from Jordan, Converse and Hurley, it said Thursday.
It hopes to find a buyer for Cole Haan and Umbro by the end of May 2013, when its fiscal year ends.
“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,” said Nike Chief Executive Mark Parker in a statement.
Both brands have struggled recently to make a profit even as revenue continued growing.
Cole Haan was acquired by Nike in 1988. The brand has paired up with tennis star Maria Sharapova on designs for years; celebrities including Vanessa Hudgens and Miley Cyrus use Cole Haan bags and shoes.
Nike took on English company Umbro in 2008. Sports giants such as David Beckham have sported the brand, as has nearly every professional British football team.
In March, Nike reported its third quarter earnings, which showed revenue growing 15% to $5.8 billion and earnings per share up 11% to $1.20. The company is gearing up for the summer Olympics in London with its Nike Pro TurboSpeed tracksuit, shoes made with Flyknit technology and more.
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