Nike to drop Cole Haan, Umbro

Nike is kicking its leather shoe and soccer brands to the curb.

The world’s largest maker of athletic shoes and clothes said Thursday that it planned to sell two of its brands — Umbro soccer gear and Cole Haan shoes and accessories — to cut costs and focus on its namesake brand.

The company says more potential lies in its Nike products along with its Jordan, Converse and Hurley brands, which it says have “unique consumer relationships” that complement the Nike brand.

Strong demand for Nike’s shoes and clothes has helped the company charge past many rivals. But like most consumer product makers, Nike Inc. faces rising costs for packaging, fuel and raw materials.

It recently launched two high-profile lines: Flyknit lightweight shoes and Nike+ training software and gear.

Nike spokesman Charlie Brooks said Nike didn’t have any buyers lined up but hoped to complete the sales by the end of May 2013, when the company’s fiscal 2013 concludes.

Cole Haan traces its roots to Chicago in 1928, when it was making flapper friendly leather shoes. Its current incarnation as a purveyor of men’s and women’s leather shoes and bags based in Yarmouth, Maine, began in 1975. Nike acquired the brand in 1988 in a deal worth about $95 million at the time.

Umbro was founded in 1924 in Manchester, England, as one of the first makers of soccer gear. Today, it also makes soccer clothing and shoes, and it outfits many European and North and South American soccer teams. Nike acquired Umbro in 2008 for $582 million.

Both brands have recently weighed on Nike’s profit margin.

In its most recent quarterly conference call, the company said revenue increased at Umbro, Hurley and Cole Haan, but their profitability fell.

Nike shares dropped 7 cents to $108.18 on Thursday.