May 04, 2016
By Jonathan Wall, PGATOUR.COM
- Adidas is seeking to sell TaylorMade, Adams and Ashworth brands to focus on footwear and apparel. (Getty Images/Harry How)
Adidas AG announced on Wednesday that it is actively seeking a buyer for its TaylorMade, Adams and Ashworth brands. According to the company, the plan is to divest three pieces of the golf unit and concentrate on Adidas Golf footwear and apparel going forward.
“TaylorMade is a very viable business," Herbert Hainer, Adidas Group’s chief executive officer, said in a news release. "However, we decided that now is the time to focus even more on our core strength in the athletic footwear and apparel market."
The announcement comes on the heels of a first-quarter sales report that stated revenues for the Herzogenaurach, Germany-based corporation increased by 22 percent on a currency-neutral basis. During that time, TaylorMade-Adidas Golf Company (TMaG) was up 6 percent versus last year, but overall it decreased by 1 percent on a currency-neutral during that time.
The company noted growth at the core brands TaylorMade and Adidas Golf was offset by sales declines at Ashworth and Adams.
"... I am convinced that TaylorMade offers attractive growth opportunities in the future," Hainer went on to say in the release. "At the same time, the planned divestiture will allow us to reduce complexity and focus our efforts on those areas of our business that offer the highest return and where we can have the biggest impact in reaching our consumers and winning their loyalty for the Adidas and Reebok brands.”
Over the course of the last two years, TaylorMade-Adidas Golf Company has undergone a series of layoffs that saw the global workforce cut by 6 percent last July and 14 percent at the end of 2015. The business posted roughly $1.03 billion in sales last year, down from about $1.5 billion in 2012.
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