Adidas announced today that it is looking for a buyer (or buyers) of TaylorMade, Adams, and Ashworth to focus on its apparel and shoe business.
Industry insiders had been speculating for months that adidas was looking to unload the lines because of poor sales, particularly after the company conducted a full review of its golf business last August. And while sales rose six percent in the first quarter of 2016, Adams and Ashworth had double-digit losses.
“TaylorMade is a very viable business,” adidas CEO Herbert Hainer said in a press release. “However, we decided that now is the time to focus even more on our core strength in the athletic footwear and apparel market. With its leadership position in the industry and the turnaround plan gaining traction, which is clearly reflected in the top- and bottom-line improvements recorded in Q1 as well as recent market share gains, I am convinced that TaylorMade offers attractive growth opportunities in the future.”
Don’t expect TaylorMade’s rival Callaway to step in with an offer, or any other top equipment company, for that matter, who might be wary about more exposure to the struggling golf-club market.