Adidas mulls sale of golf brands after tough day on the fairway
ADIDAS has launched an overhaul of its struggling TaylorMade golf business, including a potential sale of some of its brands, as the sport continues to lose popularity.
The German sportswear firm said yesterday that it has hired investment bank Guggenheim Partners to explore options for the golf business after revenues fell by 26 per cent in the second quarter.
The number of people playing golf has been steadily declining, particularly in the US, which accounts for about half of the global market. Young professionals with busy schedules are opting for less time-consuming sports such as cycling.
Chief executive Herbert Hainer said it was initially considering the possible sale of its smaller golf brands Adams and Ashworth, which have been the hardest hit, although it may also look at options for the main TaylorMade label.
Its golf unit overshadowed what were otherwise a strong set up results, with overall sales up by 15 per cent to €3.91bn (£2.75bn) in the three months to the end of June.
This was underpinned by double-digit growth in western Europe, China, and the Middle East. Net income from continuing operations increased by two per cent to €146m. Shares closed down 1.3 per cent.