05 December 2005
Monday 5 December 2005
Investor and Analyst Site Visit
Umbro, the globally recognised football brand, is today hosting a site visit to
its showroom in London for institutional investors and analysts.
The site visit will include presentations on Umbro's marketing strategy, new
product developments, the international licensee network, the recent China Joint
Venture and the UK and US markets.
Trading continues as outlined at the time of the interim results announced on
Wednesday 7 September, 2005.
The Board will update the analysts further on the following trading information:
• Across the international licensee network (excluding USA) sales trends
outlined at the interims have continued in the second half, with year to
date wholesale equivalent sales 4.7% ahead of 2004 (at constant exchange
rates and excluding the one-off luggage promotion in 2004).
• In the USA, sales of footwear in 2005 have increased three-fold to
670,000 pairs primarily through Footlocker. In contrast to the rapid growth
in 2005, efforts for 2006 are being directed towards greater emphasis on
Umbro centrally inspired products and the development of signature products
for new distribution channels.
• The Joint Venture in China announced in October is progressing well;
sales to date are 63% ahead of 2004 with full year expectations in excess of
US$30m. Mid term targets for China are for sales of US$100m buoyed by the
favourable demographics and the potential to rapidly increase the number of
• In the UK, later call off of orders by retailers, whilst having no
impact on expected sales for the year or long term cash flow, will increase
year end debtors impacting cash flow in 2005 by up to £17m.
• The 2006 order book for England licensed product is building well and is
already ahead of the actual sales for 2004 (the previous tournament year),
with sales expectations for 2006 in excess of 20% over 2004. This reflects
an anticipated further small increase in replica kit sales, a significant
increase in sales of England Associated products and the penetration of
additional distribution for the Three Lions product.
• Mid 2006 will see the launch at retail of two new product ranges, u by
Umbro and Philip Treacy for Umbro, aimed at increasing the brand's presence
in the sports lifestyle market.
Looking across the business as a whole, the business is well positioned as it
moves into 2006, a World Cup year, and the Board remains confident of delivering
increased shareholder value.
For further information or to obtain a copy of the presentations, please contact
Brunswick on 020 7404 5959.
Chief Financial Officer, Umbro plc
Tel: 0161 492 2114
Tel: 020 7404 5959
Umbro is a globally recognised football brand with a strong heritage derived
from more than 80 years' association with the sport of football. Based in the
UK, where the Umbro business was founded in 1924, the Group designs, sources and
markets football-related products which are sold in over 90 countries.
This information is provided by RNS
The company news service from the London Stock Exchange