Nike’s had a busy day today. In addition to Nike’s launch of the new Tiger Woods golfing shoe, the company has just announced that it plans to sell away Cole Haan and Umbro to focus on the sports brands it carries. That list currently includes Nike (obviously), Converse, Hurley, and Jordan.
“We see tremendous opportunity to accelerate profitable growth around the world by continuing to deliver innovation and inspire consumers through the NIKE brand.” said Nike’s CEO Mark Parker at a press conference today. “We also see significant potential in Jordan, Converse and Hurley, which have unique consumer relationships that complement the NIKE Brand.”
“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.”
Presumably, the two brands weren’t particularly profitable for the clothing giant—so it comes as no surprise that Nike intends to clear up its portfolio to focus on the businesses that actually make it money.