August 4, 2016
Nike Inc. plans to stop selling golf equipment, including clubs, balls and bags. A timeline for the exit is undetermined. The company plans to concentrate efforts on golf footwear and apparel, as well as sponsor partnerships with golfers.
The sportswear brand’s golf business rose to popularity with the success of Tiger Woods. Since 2000, the number of people playing golf has significantly fallen.
Nike’s golf business has been hurt by Woods’ absence from playing due to injury, as well as new competition from rival Under Armour Inc. Sales fell 8% to $706 million this year for Nike golf, which is one of the company’s smallest business lines, accounting for roughly 3% of total revenue.
Adidas is also selling the majority of its golf business, which is losing money. On the other hand, the announcement spurred a stock jump for Callaway Golf Co.
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