German Adidas is looking for buyers for its Taylormade-Adidas Golf, Adams and Ashworth’s golfing brands, as golf’s popularity dwindles and these brands have hampered the sporting company’s turnover for a while now.
Strong quarterly numbers
Adidas has moved up a gear after a study clearly showed how these brands impacted the company’s results. The report states that a sale of these golfing activities could help increase Adidas’ profit margins.
The company acquired Taylormade in 1997 and the brand was one of the best performers within the company. Ashworth joined the company’s ranks in 2008 and Adams Golf in 2012. However, the sport’s popularity suffered from 2014 onward, while Adidas kept flooding the market with a range of new products.
Adidas’ position on its golfing brands was divulged after it had presented strong numbers for the first quarter of 2016: turnover grew 17 % to a record 4.8 billion euro. Profit grew as well, from 221 to 351 million euro. North America was particularly strong, with a 31 % turnover increase thanks to a extensive marketing campaign. The sports brand also performed well in Western Europe and China, which is why it will increase its full-year forecast to a 15 % turnover and profit increase.
