We noticed you're blocking ads.

Keep supporting great journalism by turning off your ad blocker.

Questions about why you are seeing this? Contact us

Font Size

- Aa +

Thu 4 Aug 2016 11:13 AM

Font Size

- Aa +

Nike to exit golf equipment business

Sportswear maker said it would instead accelerate innovation in its golf footwear and apparel business and on partnering with more golfers

Nike to exit golf equipment business
Rory McIlroy who is sponsored by Nike. (Getty Images)

Nike, the world's biggest sportswear maker, said it would stop selling golf equipment, including clubs, golf balls and bags.

The company, which built its golf business on the success of golfer Tiger Woods, said it would instead accelerate innovation in its golf footwear and apparel business and on partnering with more golfers.

Nike did not give a timeline for the planned exit.

The company is the second major sporting goods maker reviewing its golf business.

Adidas said in May it would sell the bulk of its loss-making golf business, hurt by waning interest in the sport, especially in the United States.

The number of people playing golf in the United States has fallen sharply after peaking in 2000, when Tiger Woods was in his prime.

For Nike, the problem is particularly acute.

A Nike-sponsored golfer hasn't won a major golf tournament in the prior eight championships, according to ESPN.

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 no. 1 ranked golfer, endorses Under Armour.

Sales in the golf business fell 8 percent to $706 million in Nike's latest financial year ended May 31. It is one of the company's smallest businesses, contributing about 3 percent to its total revenue.

Arabian Business: why we're going behind a paywall

For all the latest retail news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
Real news, real analysis and real insight have real value – especially at a time like this. Unlimited access ArabianBusiness.com can be unlocked for as little as $4.75 per month. Click here for more details.