Don’t think that Nike is afraid to dump brands that don’t fit in with its current growth plans. According to a story on Zacks.com, the owner of Hurley and Converse is planning to “divest” soccer brand Umbro and its dress shoe label Cole Haan. And they hope to get it done by May of 2012.
We believe the reason behind the divestiture is that Cole Haan and Umbro’s performance does not match with the performance of Nike’s other brands. . . We believe the company’s decision to divest its two underperforming brands will boost its bottom line. Meanwhile,in an attempt to expand its global reach and market share, Nike is capitalizing on growth opportunities in emerging markets, especially China.
Maybe this will allow Nike to spend even more on action sports global domination.
[Link: Zacks]
Your first sentence should be understood by everybody in action sports.
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