In reporting its first half results, Adidas has stated that it is looking at a potential sale of all its golf brands which include TaylorMade, Ashworth and Adams. As a result Adidas has hired Guggenheim Partners LLC, an investment bank, to explore future options for the brands.
In a company statement Adidas said, “As a reaction to the persisting challenges at TaylorMade-Adidas Golf, the Adidas Group has initiated a major turnaround plan for its golf business. The set of measures is aimed at enhancing the company’s pricing, promotion and trade patterns, as well as optimising the supply chain and product costs…In addition, the Adidas Group has engaged with an investment bank for the purpose of analysing future options for the company’s golf business, in particular the Adams and Ashworth brands.”
Adidas’ TaylorMade golf division had revenues of $995 million last year, but sales fell 32 percent between 2012 and 2014. Sales in the second quarter of 2015 saw a dramatic drop, down year on year by over a quarter at 26 percent. On Thursday Adidas AG CEO Herbert Hainer (pictured), is reported to have said, “The problem which we have is the R15 and the AeroBurner are not selling. It’s also fair to say our competitors are getting better.”
Adidas has already changed the senior management at the golf business, including appointing David Abeles as its new chief executive in March, together with the launch of a restructuring programme last year.
Adidas bought the TaylorMade brand in 1997 and has developed it into one of the world’s biggest golf suppliers. It acquired the Ashworth brand in 2008 for $72.8 million and the Adams brand for $70 million four years later. More at: http://www.adidas-group.com/en/media/news-archive/press-releases/2015/first-half-2015-results