“Going forward, the Group intends to focus its efforts in this market segment on further strengthening its position as a leading provider of innovative golf footwear and apparel through the Adidas Golf brand”.
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One of the biggest golf companies in the world, Adidas, which owns TaylorMade and Ashworth among other brands, has said it is selling most of its golf unit following a drop in participation in the game, especially in the USA. “However, we decided that now is the time to focus even more on our core strength in the athletic footwear and apparel market”, CEO Herbert Hainer in a release.
Wednesday’s announcement came at the end of the company’s first-quarter sales report, which showed Adidas’ overall net sales up 22 percent compared to a year ago.
The German sportswear firm, which launched a review of its golf unit last August, said on Wednesday it had made a decision to focus on selling golf shoes and clothing under its main Adidas brand and enter into talks to sell the TaylorMade, Adams and Ashworth golf brands.
Adidas began exploring possible sales options previous year when Q2 2015 earnings for TaylorMade fell by 26 percent.
The popularity of golf has fallen sharply in the U.S. since 2000, the year Tiger Woods was at his peak.
Adidas, which is making a strong push in North American sports, bought TaylorMade in 1997, Adams in 2008 and Ashworth in 2012.
The company says it is actively seeking a buyer for the TaylorMade brand as well as the Adams and Ashworth brands.
Analysts predict the business might draw interest from companies in Asia or a financial investor, rather than a rival such as Nike (NKE.N), Puma (PRTP.PA), Under Armour (UA.N) or Callaway Golf (ELY.N), which might be wary of increased exposure to golf.
Hainer reiterated his desire to hang on to Reebok on Wednesday, pointing to a booming market for fitness.
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Adidas brand sales were also strong in greater China and western Europe, rising 30 percent and 26 percent respectively. But that failed to make up for double-digit declines at Ashworth and Adams.
