Adidas to exit golf? New strategy leads to ‘robust’ first-half growth
10/08/2015
It said comparisons for the second quarter were difficult following the World Cup in 2014, but that revenues grew 15% during the second quarter to €3.91 billion.
Sales were boosted by double-digit increases at adidas Originals and NEO as well as high-single-digit growth in the training and running categories.
CEO Herbert Hainer said: “We have said all along that our new strategy ‘Creating the New’ will show first positive results this year. The second quarter is proof positive of that. I am pleased to see how well adidas and Reebok are resonating with their respective consumers.“
However, its golf brand, TaylorMade-adidas Golf, continued to struggle. Revenues fell 26% currency-neutral, due to sales decreases in most categories, in particular metalwoods and irons.
It has now initiated a “major turnaround plan” for its golf business aimed at enhancing the company’s pricing, promotion and trade patterns, and optimising the supply chain and product costs.
It will “re-prioritise global marketing spend” and target significant operating overhead savings at TaylorMade-adidas Golf – whether that means job losses is unclear but likely.
“In addition, the adidas group has engaged with an investment bank for the purpose of analysing options for the company’s golf business, in particular the Adams and Ashworth brands.”
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