Nike Inc. is trimming its stable.
“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,” Mark Parker, president and CEO of Nike, said in a statement.
“We see tremendous opportunity to accelerate profitable growth around the world by continuing to deliver innovation and inspire consumers through the Nike brand, [and] we also see significant potential in Jordan, Converse and Hurley, which have unique consumer relationships,” he added.
Nike purchased Manchester, England-based soccer brand Umbro in 2008 for more than $580 million, with an eye to strengthening its presence in the soccer market. Fashion-casual brand Cole Haan, based in New York, was acquired in 1988.
According to the release, Nike will begin divesting the two businesses immediately and expects to have completed the process by May 31, 2013, the end of Nike’s 2013 fiscal year.