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Nike to sell Umbro

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Wonder what this will mean for Canada? I think Umbro has done a great job promoting Canada since taking over.

"US Sportswear company Nike is planning to sell 2 of its brands, Umbro and Cole Haan.

Nike had acquired Umbro, the UK based football sportswear and footwear company in 2008 for $567million. However, Nike CEO Mark Parker is selling the brand following unprofitable results as analyzed by Chris Svezia, an analyst for Susquehanna Financial Group in New York.

“They really haven’t done the best job on execution with acquisitions,” Svezia said today in a telephone interview. “Nike bought Umbro at the peak of the market, they’ve already taken a writedown, it’s not a profitable business, so why bother keep throwing money at it? They are looking to cut their losses and move on.”

By acquiring Umbro, Nike had attempted to surpass Adidas as the world’s largest football apparel company and with the England national team having Umbro as its supplier, things had seemed to give Nike an immediate push. Things did not go as planned however as England had failed to qualify for the 2008 European Championships, thus a decline in sales followed.

Recent changes in technical sportswear supplier regarding Nike and Umbro involved English Premier League champions Manchester City who will be wearing Nike apparel as from 2013/14."

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Nike and Umbro were not integrated at all in Canada, so I doubt there would be much change. Umbro were never as much of a deep pockets brand as Nike, and the breadth of their club/country portfolio shows this.

Part of me wonders if stealing Man C was the point all along. Umbro is originally from Manchester and now Nike has both football clubs?

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