Nike’s Brand Portfolio

Nike’s subsidiaries have a significant place in Nike's plan to grow to $23 billion in revenue by 2011. We estimate that 25 percent of the company’s targeted revenue growth in the next four years will be generated by these brands which currently represent revenues of more than $2 billion. Collectively over the past five years, these subsidiaries have nearly tripled revenue and increased their pretax income contribution more than fivefold.

As part of our growth strategies, Nike continues to optimize its portfolio, ensuring that the company is investing in opportunities that will generate the highest returns. Nike’s Brand Portfolio currently includes four wholly owned subsidiaries: Converse Inc., NIKE Golf, Cole Haan , and Hurley International LLC. The company has announced several important changes to its portfolio:

In September 2007, Nike announced it was exploring the sale of NIKE Bauer Hockey.  On February 21, 2008, Nike announced it was selling Bauer to Kohlberg & Company and W. Graeme Roustan for $200 million. On November 15, 2007, Nike announced it reached a definitive agreement to sell its Starter brand, the main business of the Exeter Brands Group, to Iconix Brand Group, Inc. for $60 million in cash. The transaction was completed in December 2007.

On October 23, 2007, Nike announced it had reached agreement on an all-cash offer to acquire Umbro plc, a leading United Kingdom-based global football (soccer) brand with more than 70 years of experience in the world’s No. 1 sport and the world’s biggest football market.   On December 21, Nike announced it acquired 19.9 percent of Umbro shares from Sports Direct International.  On January 31, 2008, Umbro shareholders accepted Nike's offer. Nike¹s wholly owned subsidiary, NIKE Vapor Ltd.,  completed the acquisition on March 3, 2008.