Adidas Golf Posts 16% Drop In Revenue

adidas’ financial results have revealed a 16% drop in revenue from its golf sales compared to those of 2012. 

The results included a 4% loss in both the emerging markets of Europe as well as North America while the Asian market showed a 10% drop compared to last year. The adidas Group’s total revenue fell from £3.5bn in 2012 to £3.2bn in the third quarter of this year.

Herbet Hainer, CEO of the adidas Group, said of the loss: ‘Due to the continued softness in the global golf market, where TaylorMade-adidas Golf is the dominant leader, we took the decision in the third quarter to be more consequent and accelerate the rebalancing of inventories to healthier levels in the marketplace.’

Hainer added: ‘As a result, sales declined 16 per cent in the segment in the third quarter and gross margins decreased over 10 percentage points due to additional markdowns and incentives. This alone had a 70 basis point negative impact on the Group’s gross margin performance in the third quarter.’

The news comes as fellow apparel brand ASICS announced an overall sales increase in Europe of 7% driven by a 48% growth in running apparel.