Soho
Nike sells Cole Haan
21.11.2012 3487

Nike sells Cole Haan

Nike Inc. agreed to sell leather shoes and handbags manufacturer Cole Haan to private equity fund Apax Partners for $ 570 million as part of an asset separation plan.

Nike, which last month agreed to sell Umbro football equipment and clothing maker to Iconix Brand Group Inc. for $ 225 million dollars, pays more attention to the brand of the same name, as well as divisions of Jordan, Converse and Hurley.

The company earned a higher return on investment from the sale of Cole Haan, a brand that earned $ 31 million in revenue for the last fiscal year ending May 535.

Nike bought Cole Haan in 1988 for $ 80 million, buying back the company's debts of $ 15 million. At the same time, Umbro sold it at a discount to its 2008 acquisition price of $ 565 million.

Nike said it expects the sale of Cole Haan to be completed early next year.

Umbro and Cole Haan make up a relatively small share of Nike. Together, brands generated $ 797 million in sales over the last fiscal year, compared to Nike's total $ 24,13 billion in sales.

Nike is now at the peak of a favorable cycle of athletic shoes, and new products like Nike + FuelBand and Flyknit have caused a great stir, however, slowing demand in China and rising costs have put pressure on the results in recent quarters.

Analysts spoke positively about Nike's plan for asset sales, noting that targeting fewer brands makes sense. Some observers have argued that developing small brands can be tricky in a large company like Nike, as the best design and marketing staff are likely to be recruited into high-end divisions like Jordan.

Before starting to divest assets this year, Nike last ditched the brand in April 2008 when the company sold Bauer Hockey. In late 2007, she also sold the Starter discount clothing line. Based on materials from asiareport.ru.

Nike Inc. agreed to sell leather footwear and bag manufacturer Cole Haan to private equity firm Apax Partners for $ 570 million as part of the company's plan to spin off ...
5
1
Rating

Latest News

Geox chose actress and TV presenter Yulia Vysotskaya as brand ambassador

The Italian brand Geox presented its first brand ambassador in Russia, actress and TV presenter Yulia Vysotskaya, and presented a new capsule collection of shoes and accessories for the spring-summer 2023 season, on which Geox designers worked…
09.12.2022 275

In St. Petersburg and the region, the volume of commissioning of warehouse real estate approached a record

According to the consulting company Nikoliers, in 2022, about 343 sq. m of quality warehouse space. This is 2,1 times higher than the figure for the whole of 2021, when…
08.12.2022 335

Uzbek shoemakers gather at Euro Shoes

Yan Belyaev, founder of the Euro Shoes premiere collection exhibition, and Uzcharmsanoat Fahriddin Boboev, chairman of the Association of Footwear Manufacturers of Uzbekistan, met at the BIOT-2022 international exhibition in Moscow and confirmed the importance of participation…
08.12.2022 263

Bata launches shoe collection made from recycled plastic bottles

Bata presented a collection of their Power brand called Love Ocean. The collection includes athletic-style shoes with lightweight and breathable uppers made from recycled single-use plastic bottles.
07.12.2022 320

Stores of Turkish brands will open instead of Mark & ​​Spencer and Gap in Russia

Stores of Turkish fashion brands Network, Beymen, Mudo will open at Mark & ​​Spencer and Gap squares, which are shutting down business in Russia, the telegram channel reports…
07.12.2022 501
When you sign up, you will receive weekly news and articles about the shoe business on your e-mail.

To the beginning