Nike to exit golf equipment market amid falling sales

Nike, the world's largest maker of sporting goods, will stop selling golf equipment, striking another blow to a pastime hurt by slowing participation rates in recent years.

The company will shift away from the golf clubs, balls and bags most notably championed by Tiger Woods, and subsequently by Rory McIlroy, but it will continue selling footwear and apparel for the sport, according to a statement.

Sales at the Nike Golf division fell 8.2 per cent to $706 million (€634 million) in the fiscal year that ended in May, making it the company’s worst-performing major category.

Woods’s stardom

Nike built its golf business around the stardom of Woods, who helped draw interest to the sport in the late 1990s and early 2000s. But the athlete took a break from golf after a car accident outside his Florida home in 2009 that led to an admission of marital infidelity. He returned to the sport but never regained his earlier dominance.

Woods (40) has used Nike equipment, and the company sells a clothing line under his name.

The company said it would continue to innovate in clothing and shoes. But golf’s appeal has slumped in recent years, especially among many millennials. The number of people playing golf in the United States has fallen sharply after peaking in 2000, when Woods was in his prime.

For Nike, the problem is particularly acute. A Nike-sponsored golfer has not won a major golf tournament in the prior eight championships.

Nike is also facing stiff competition from smaller domestic rival Under Armour, which has successfully lured top sports personalities to endorse its brands. Jordan Spieth, last year's top-ranked golfer, endorses Under Armour.

Golf ranked as Nike’s smallest category last year, below action sports, women’s training and other segments. Sales of the division, which contribute about 3 per cent of group revenue, have fallen for three straight years.

Sustainable growth

"We're committed to being the undisputed leader in golf footwear and apparel," said Trevor Edwards, president of the Nike brand. "We will achieve this by investing in performance innovation for athletes and delivering sustainable profitable growth for Nike Golf.

"Adidas, Nike's biggest rival, also is shifting away from golf. The company has been seeking buyers for the bulk of its golf business, including TaylorMade and Adams clubs. The operations have been a drag on Adidas's profit. – (Bloomberg/Reuters)