Umbro is apparently trying to reassert itself as a football brand in Europe, after Nike took away from it all its juiciest football licenses. The brand announced that it will replace Nike as the official supplier of the PSV Eindhoven football club in the Netherlands from the 2015-16 season and until 2020. The Eindhoven team, which has been sponsored by Nike since 1994, is regarded as a favorite in the qualifications for next year's Uefa Champion's League.
Umbro will continue to sponsor the Nantes and Lens clubs in France, following the transfer of the license from Noël Soccer to Groupe Royer, which plans to add other sponsorships and develop the brand in the lifestyle sector. Confirming a report in sport-guide.com, Royer says it's taking on 26 of the 32 employees of Noël who were responsible for Umbro in a business that was generating annual sales of around €18 million, mostly with textile products. Royer, which is also the licensee of New Balance in France, Germany and the Benelux countries, may add other territorial rights for Umbro in the future.
Iconix Brand Group, which bought Umbro from Nike in December 2012, bought also the North American rights for the Pony brand in partnership with Anthony L&S Athletics earlier this year for $37 million, with an option to acquire Pony assets in other territories around the world. The business is expected to generate royalties of $7-9 million this year. AL&S, which also owns Etonic, will continue to act as Pony's core licensee for footwear.
Iconix now owns more than 35 brands including Danskin, London Fog, Ocean Pacific and Starter. These and other brands, including Rocawear and Ed Hardy, belong to Iconix' men's segment, whose revenues, mostly in the form of licensing royalties, declined last year by 22.4 percent to $111.7 million. They increased by 8 percent in the final quarter.
The company has reported a 7 percent increase in its total revenues to $461.2 million in 2014, with licensing revenues up by 2 percent to $406.9 million. On a GAAP basis, its net income went up by 19 percent to $152.7 million.
Umbro and a couple of other brands in Iconix' portfolio, Lee Cooper and Peanuts, were the drivers in the double-digit growth of its revenues from outside the U.S., which have come to represent 40 percent of the total turnover. Iconix said it expects rapid expansion in its international business, particularly with Umbro. Zalando has just added Rocawear's casual line of clothing to its online catalog through a joint venture covering 15 European countries.
