Nike To Stop Selling Golf Equipment, Focus on Fashion
Sporting goods manufacturer Nike (ticker: NKE) is changing course – its golf course, specifically – as it’s going to halt production of golf clubs, balls and bags and instead shift attention to golf fashion; shoe and sportswear expansion.
CNN Money pointed to a July 21 Nike public filing that illuminates the company’s decision to stop selling this equipment. Last fiscal year, Nike Golf returned the lowest amount of revenue at $706 million when compared to the company’s larger sectors. For comparison, the running department made $5 billion and Jordan Brand made $2.7 billion, CNN Money reports.
This is on par with rival Adidas, CNN Money reports, which announced it would sell its TaylorMade golf equipment business. Similar to Nike, however, it’s still interested in its golf footwear and clothing ventures.
Nike also anticipates increasing its clothing line sponsorship deals. It already works with Rory McIlroy, Michelle Wie, Tiger Woods and more.
Whether this focus will ultimately help Nike, though, is up for debate. It’s facing steep competition from Adidas, Skechers USA (SKX) in addition to many athleisure brands, reports Bloomberg Gadfly. Also, its stock price is telling, down about 12 percent on the year. Meanwhile, Adidas stock is up 69 percent so far this year.
Source: U.S News