Brown Shoe Company had bought these two brands and two others, And 1 and Ryka, through the acquisition of American Sports Goods for $145 million in February 2011. Eight months later, it sold And 1, a brand of basketball products, for $55 million. This time it is selling Avia, a brand of sports shoes, and Nevados, a brand of outdoor shoes, for $74 million.
The management of Brown Shoe stressed that it had not actively looked for new owners for these brands. It was approached by a company, Galaxy Brand Holdings, headed up by Eddie Essen, former president of E.S. Originals. He said that he could see significant opportunities for their growth in the U.S. and abroad.
Brown Shoe will keep Ryka, a brand of women's sneakers for which it sees potential for further development. The costs related to the divestiture of Avia and Nevados will result in a charge of between $15 million and $17 million on this year's accounts. Out of these amounts, $11 million to $13 million will be non-cash charges.
Brown Shoe later pointed out that it made a net profit of $4.16 million in 2012 on Avia and Nevados, against a small loss in the previous year, although their combined sales declined by 21 percent to $77.5 million. The generated a gross margin of 20.9 percent, 2.4 percentage points below the level of the previous year.