22 November 2007
22nd November 2007
Umbro plc ("Umbro")
Trading update and Scheme Document
Umbro today provides the following update on its current trading and outlook
following the non-qualification of England for the European Championships and
prior to the publication of the scheme document in relation to Nike's
recommended cash offer to acquire Umbro.
In the Interim Results announced on 6 September 2007 we said that branded sales
growth and performance of international markets in 2007 would be in line with
expectations. This remains our belief.
We also stated that sell-through of England replica jerseys during the critical
summer period had been disappointing. Conditions continue to be very challenging
in relation to retail sales of licensed apparel as consumer demand for England
replica jerseys has weakened further since the Interim Results announcement.
The reduced levels of England Home jersey sell-through at retail in 2007 and
England's failure to qualify for the European Championships will have some
effect on revenues in the current financial year. The effect on 2008 revenues,
though still unclear, will be more pronounced due to a substantial reduction in
our expected sales volumes for the new Away jersey.
This situation serves to underline our strategy to pursue growth in branded
products and international markets. This strategy, which is clearly paying
dividends, would be strengthened as part of Nike's affiliate programme if the
offer from Nike were to be successful. We look forward to despatching the scheme
document, which will outline further details of the offer, to Umbro shareholders
tomorrow, Friday 23 November.
Brunswick Group LLP 020 7404 5959
Simon Sporborg / Dominic McMullan
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