Adidas Group is considering getting out of golf altogether.
The German company has hired investment bank Guggenheim Partners and charged it with exploring the possible sale of some or all of its golf brands, including TaylorMade, Ashworth and Adams Golf. The company made the announcement Thursday morning as it announced disappointing second quarter earnings for its golf businesses. Chief Executive Herbert Hainer said the company had prioritized the sale of the Ashworth and Adams brands, but is now considering all options.
Adidas bought TaylorMade in 1997, eventually building it into the biggest company in the sport. In 2008, adidas acquired Ashworth for $72.8 million. The company purchased Adams Golf in 2012 for $70 million.
Golf sales declined 26 percent from a year ago, a worse percentage comparison to the first quarter. The company's new products have not been received well by golfers. These results continue a trend of lost market share. Total 2014 sales dropped 28 percent from $1.4 billion in 2013 to just about $1 billion.
TaylorMade CEO David Abeles, who returned to the company in February 2015 before assuming the chief executive position from the departed Ben Sharpe, continued a reorganization plan last month, laying off 6 percent of its global workforce.
Add Comment