Nike announced that it is "stepping out of the golf equipment business," which includes clubs, balls and bags, in an effort to "focus on footwear and apparel," according to Mike Stachura of GOLF DIGEST. Nike, which reported "flat to down annual sales in its overall golf business the last two years" at just north of $700M, has been in the golf business since '84, but only introduced its first clubs in '02. Its sales in '13 and '14 were nearly $800M. Nike, known for "non-traditional equipment designs over the years," has struggled to become a "leading player in the equipment business, with market shares in woods and irons that were routinely one-tenth those" of leaders Callaway and TaylorMade. Nike-sponsored golfer Tony Finau said, "I love the equipment I'm playing now, and it's a real process to get through to make a change like that. I don't know exactly what it's going to mean for contracts, but it's pretty likely that this time next year I won't be playing Nike clubs" (GOLF DIGEST, 8/3). In N.Y., Sara Germano wrote golf is the "smallest sport category at Nike." The company makes the "bulk of its revenue sales of footwear and apparel but gained a following in golf in large part" due to Tiger Woods (WALL STREET JOURNAL, 8/3).
FINISHING STRONG: ESPN.com's Darren Rovell reported Nike Global Corporate Communications Dir Brian Strong said that the company has "no plans to sell its golf equipment business as part of the transition, and that where there are products being made, production will continue to completion." Strong said that will "take place over the next few months." The announcement comes three months after adidas said it would "enter into negotiations to sell off its golf division, including TaylorMade, Adams and Ashworth" (ESPN.com, 8/3).
