Nike to Stop Making Golf Clubs, Balls
August 03 2016 - 7:54PM
Dow Jones News
By Sara Germano
Nike Inc. is getting out of the business of selling golf clubs
and balls, products it built around Tiger Woods but has seen suffer
with a recent downturn in the sport.
The Beaverton, Ore.-based company said Wednesday that it would
narrow its focus to golf apparel and footwear and spend more on
partnerships with professional golfers. As a result, the company
will stop making clubs, balls and bags.
"We're committed to being the undisputed leader in golf footwear
and apparel," said Trevor Edwards, the Nike brand president.
The move comes as the golf industry, and sporting goods in
general, has struggled. Rival Adidas AG said in May that it is
looking to sell parts of its golf business, including the
TaylorMade brand, which is among the largest in the industry.
Golf is the smallest sport category at Nike, and sales for the
unit slipped 8% to $706 million for the fiscal year ended May 31.
The company makes the bulk of its revenue from sales of footwear
and apparel but gained a following in golf in large part due to the
late 1990s rise in popularity of Mr. Woods.
Nike has named one of its most prominent buildings at its
headquarters after the 14-time Major tournament winner, and
co-founder Phil Knight mentioned Mr. Woods as among his favorite
athletes in his autobiography published this spring.
In recent years, Nike -- and the professional side of the golf
industry at large -- has looked to find a successor to Mr. Woods,
who elevated the sport to new heights in his heyday but has
struggled of late. Nike has backed 27-year-old, four-time Major
winner Rory McIlroy, while rival Under Armour Inc. has found
success with Jordan Spieth, 23, who has won two Majors.
Nike still endorses Mr. Woods, 40, who hasn't won a tournament
since 2013 and has been out of action for nearly a year as he
recovers from multiple back surgeries. There is no timetable for
his return.
U.S. participation rates for the sport peaked at 30 million in
2003, according to the National Golf Foundation, but have leveled
off since. Manufacturers like Nike and others have worked to try to
make golf more appealing to millennials, including making casual
golf shoes to appeal to the broader athleisure trend.
Some golf companies see greener pastures on the horizon.
Acushnet Holdings Corp., which owns golf brands Titleist and
FootJoy, filed for an initial public offering in June.
Brian Costa contributed to this article.
Write to Sara Germano at sara.germano@wsj.com
(END) Dow Jones Newswires
August 03, 2016 20:39 ET (00:39 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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