$NKE Golf = addition by subtraction, following $UA playbook
While $760 million is a lot of money, in Nike dollars, it’s a blip on the radar screen. And let’s face it, the clubs aren’t very good and the Nike balls will never be able to keep up with the marketing behind Titliest and others. Doesn’t help that Nike’s 3 largest golf endorsers — Tiger, Rory and Michelle (Wie for those that don’t remember her) — haven’t exactly been lighting up the course lately. That statement is probably not entirely fair to Rory McIlory, but he’s been out of the picture for most of the majors in the US lately.
At the end of the day, the longer the clubs lag behind the other brands (pun intended) then the more it dragged on the brand. Under Armour (UA) doesn’t seem to be having any issues playing in the golf space with just clothing and apparel and its ace Jordan Speith (read more about our take on Under Armour here), so expect Nike to refocus on its golf apparel and shoes.
Nike plans to stop making golf clubs, balls and bags so that it can focus on expanding its line of golf shoes and sportswear, the company said Wednesday.”We’re committed to being the undisputed leader in golf footwear and apparel,” Nike (NKE) president Trevor Edwards said in a statement.According to a public filing from Nike on July 21, Nike Golf generated the least revenue for the company among its major segments. It made just $706 million in the company’s last fiscal year, compared to $5 billion generated by its running sector or $2.7 billion from Jordan Brand sales.
