Adidas explores sale of struggling golf brands

Adidas acquired the TaylorMade brand in 1997 along with Salomon, developing it into the world’s biggest golf supplier, and bought its smaller brands Ashworth in 2008 and Adams in 2012 for $72.8 million and $70 million, respectively.

The company made the announcement Thursday morning as it announced disappointing second quarter earnings for its golf businesses.

The focus at first is on finding a buyer for Adams, a sub-brand within the golf unit that makes clubs for beginners, and for Ashworth polos and cardigans. “The set of measures is aimed at enhancing the company’s pricing, promotion and trade patterns, as well as optimizing the supply chain and product costs”.

“As a reaction to the persisting challenges at TaylorMade-Adidas Golf, the Adidas Group has initiated a major turnaround plan for its golf business”.

Adidas AG on Thursday said it has engaged an investment bank to explore options for its…

Golf sales declined 26 percent from a year ago, a worse percentage comparison to the first quarter.

The company said the golf unit had seen sales fall in most categories, but particularly in metalwoods and irons.

In currency-neutral terms, second-quarter sales in North America were flat, while jumping 19% in greater China and plunging 14% in Russian Federation. Baltimore-based Under Armour Inc., which according to retail-sales figures collected by SportScanInfo and Sterne Agee surpassed Adidas as the no. 2 seller of sports apparel and footwear in the U.S. last year, reported a 29% revenue surge in the second quarter.

At the time, Adidas nevertheless predicted that restructuring efforts – including a U.S. plant closure and a 15% cut in TaylorMade’s workforce – would put the business back to growth and profitability this year.

Adidas has also benefited from the weak euro this year, Pusz said. Among the sporting goods makers, Nike gets less than 5% of sales from golf and is unlikely to invest in the sport.