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England kits push Umbro to big first half
England - 11 September, 2006
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Sports-apparel company Umbro attributed a 55 percent first-half, pre-tax profit to big World Cup expectations for the English national team.
England's kits were popular not only in that nation, but were purchased by people as far away as China.
Umbro announced pre-tax profit for the six months to July rose to GBP 17.7 million on a 42 percent increase in total sales to GBP 249 million.
The company said the figures were skewered as a result of the World Cup. Peter McGuigan, the chief executive, said total sales rose about 25 percent compared with the first half of 2004, when EURO 2004 took place.
Even better for Umbro was John Terry being named England's new captain. Terry is sponsored by Umbro.
"We re-signed him for the rest of his career, and that will certainly help," McGuigan said.
About 70 percent of Umbro's overall business comes from abroad, including countries such as China. In the first half, sales in China rose 61.5 percent as England national kits sold out there.
The figures weren't as good in the United States, and the company said it was working to improve its performance there.
"It demonstrates clearly that, whatever the management tries to portray the company as, it is primarily a supplier of 'licence' or 'replica' product, not an 'aspirational brand'," Richard Ratner, a Seymour Pierce analyst, said. "Moreover, its profits will ebb and flow ... depending on the timing of competitions."
England's kits were popular not only in that nation, but were purchased by people as far away as China.
Umbro announced pre-tax profit for the six months to July rose to GBP 17.7 million on a 42 percent increase in total sales to GBP 249 million.
The company said the figures were skewered as a result of the World Cup. Peter McGuigan, the chief executive, said total sales rose about 25 percent compared with the first half of 2004, when EURO 2004 took place.
Even better for Umbro was John Terry being named England's new captain. Terry is sponsored by Umbro.
"We re-signed him for the rest of his career, and that will certainly help," McGuigan said.
About 70 percent of Umbro's overall business comes from abroad, including countries such as China. In the first half, sales in China rose 61.5 percent as England national kits sold out there.
The figures weren't as good in the United States, and the company said it was working to improve its performance there.
"It demonstrates clearly that, whatever the management tries to portray the company as, it is primarily a supplier of 'licence' or 'replica' product, not an 'aspirational brand'," Richard Ratner, a Seymour Pierce analyst, said. "Moreover, its profits will ebb and flow ... depending on the timing of competitions."
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