Adidas Seeks Golf Buyer

adidas has revealed it aims to sell the bulk of its golf business in order to focus on shoes and clothing, stating it would focus on retailing golf shoes and clothing under the adidas label. The move will see the brand seek to sell its TaylorMade, Adams and Ashworth brands. 

The announcement comes after its core adidas brand reported strong quarterly sales, particularly in the United States.

adidas bought TaylorMade in 1997 as part of its $1.4bn acquisition of French skiing label Salomon, developing it into the world’s biggest golf supplier. It bought Ashworth in 2008 and Adams four years later.

Analysts predict adidas might draw interest from firms in Asia or a financial investor, rather than a rival such as Nike, Puma, Under Armour or Callaway Golf.

adidas – named Brand of the Year, in association with Pinsent Masons, at the BT Sport Industry Awards last week – made the announcement as it reported a 31% jump in quarterly sales of its core brand in North America.

Chief executive at adidas, Herbert Hainer – who will be stepping down from his role in October – said growth was driven by both fashion products such as its retro Stan Smith sneakers and training gear like its springy Boost running shoes, with US sports gear sales up 50% in the quarter.

“Our grassroots activation is paying off, with the U.S. consumer starting to acknowledge us as an authentic sports performance brand,” he said.

Total adidas brand sales rose 26%, outperforming the 6% of its Reebok fitness label, but Hainer reiterated his desire to hang on to Reebok, pointing to a booming market for fitness.

TaylorMade sales returned to growth in the quarter, rising 6%, while adidas golf sales grew 3%. But that failed to make up for double-digit declines at Ashworth and Adams and Hainer said the unit was still making a small loss overall.

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