Nike Inc. is exploring the sale of Hurley International, the surf brand acquired in 2002, according to a report from Reuters. The move follows prolonged weakness in the overall action sports market.
A sale of Hurley is one of the options that Nike is considering for the Costa Mesa, CA-born brand, Reuters reported, citing people familiar with the matter. It wasn’t clear how much Hurley would fetch in a sale. Reuters noted that surf brands “have lost their appeal among non-surfing consumers, who now prefer boutique brands and retro streetwear.”
Nike declined to comment.
Nike acquired Hurley in 2002 from founder Bob Hurley for an undisclosed sum after trying to break into the burgeoning surf, skate and snowboard markets at the time. The brand was founded in 1979.
In late June, Nike appointed John Schweitzer as CEO and CFO of the Hurley brand. Schweitzer was CFO and COO at Hurley from April 2006 to August 2009 and then worked for Converse until 2017. Schweitzer replaced Bob Coombes, who became general manager in 2015 after Bob Hurley stepped down.
Hurley’s revenues are included in Nike’s Action Sports segment, which also includes Nike’s skate footwear and lifestyle apparel offerings. Nike last reported sales of its Action Sports segment in the year ended May 31, 2017. Revenues were $596 million, down 9 percent from $655 million in fiscal 2016. Hurley’s sales were in the $70 million-a-year neighborhood when Nike bought the company in 2002 and Nike has stated that Hurley’s sales reached $260 million in the company’s fiscal 2012 year.
Any sale would continue Nike’s moves to divest non-core businesses that began in the 2000s. Nike sold Starter in 2007, Bauer in 2008, Umbro in 2012 and Cole Haan in 2013. The company also exited the Nike-branded golf equipment business in 2017. Nike also owns Converse.
Photo courtesy Hurley
