Umbro boot gives sales a boost

A revolutionary football boot made from kangaroo leather and worn by England striker Michael Owen today kept sportswear firm Umbro on course to meet its financial goals.

Umbro said the X-boot was the top-selling boot in the month following its launch in March and had helped arrest a trend of declining sales of branded footwear and equipment in the UK.

Sales of footwear made by Umbro were up 25.4% in the six months to July 3 while demand rose for all other branded categories such as clothing and sports equipment.

The improvement was also fuelled by a deal with retailer Foot Locker which contributed to sales of footwear in the United States more than doubling.

The 13% growth of its branded products helped the company to minimise the pain from lower sales of replica kits due to the absence of a football tournament this summer to rival the Euro 2004 championships.

Umbro said sales of licensed clothing had fallen by 40.7% in the first half and this explained why overall turnover was down by a third at £64.7m (€95.7m).

Operating profits were 25.1% lower at £12.3m (€18.2m) which Umbro said was in line with hopes and a better performance was expected during the build-up to the 2006 World Cup.

Chief executive Peter McGuigan said: “The board remains confident about the outcome for the full year.

“Umbro has already developed and launched ranges to the trade for 2006. The reaction has been very encouraging, and the group is excited about the prospects for the 2006 World Cup year.”

Umbro has been pushing its branded apparel range to reduce its reliance on sales of replica kits, signing up designers such as milliner Philip Treacy.

Shares in the Cheadle-based firm suffered earlier this year when it agreed to end its sponsorship deal with Premiership champions Chelsea five years early, while its contract with Scottish club Celtic was not renewed last year.

At the heart of its strategy to boost sales of branded products is the Evolution X range, which is developed using the latest technology.

The X-boot is laced in such a way as to maximise the kicking surface area and promote cleaner contact with a football, while the kangaroo leather makes it stronger and prevents it becoming soggy in wet conditions.

In addition to Michael Owen, other stars to wear the X-boot are Chelsea captain John Terry and Liverpool star Luis Garcia.

Stockbroker Seymour Pierce said the strategy had some way to go and Umbro should still be viewed as a replica kit maker – a point reflected by the volatility of its turnover.