The manufacturer said branded sales growth and performance in 2007 is in line with expectations, but there is a poor outlook for the volume of sales of England product launching in 2008.
Umbro had expected to shift a significant number of England replica jerseys by the end of the year, but it is now unlikely this will happen. Umbro, which has revealed it will slash its distribution from 3 million to 1 million shirts, continues to work closely with Sports Direct to find a mutually acceptable way forward. Umbro has agreed certain changes to commercial arrangements, however no final resolution has been achieved and discussions are ongoing.
Blue Oar Securities said that this morning’s profit warning will cause profit before tax for 2007 to come down from£20 million towards£5 million.
Umbro’s sale to Nike should be completed in the first week of March, although Sports Direct and JJB, which between them own nearly 40 per cent of Umbro, could still block the deal. It is understood that the retailers want to make sure their deal to sell England shirts remains in place.
No comments yet