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Category > FAQ > Page Uploaded: 03/03/16

Q: Adidas is considering the sale of TaylorMade

AAdidas is considering the sale of TaylorMade Golf: due to poor sales in North America. Adidas has stated that the popularity of golf in the U.S. is decreasing - due to a lack of iconic and successful U.S. golfers of late - and there is little sign of the trend changing in the sports most lucrative marketplace. Adidas has already cut jobs at Taylormade, and after announcing a fourth-quarter loss in 2015, it will consider further job cuts or a sale of the company. Since the first quarter of 2014, Taylormade has made a loss in every quarter, except for the third quarter of 2015; which saw a 5% growth in sales. However, the first quarter of 2014 saw a 35% sales loss, and the fourth quarter of 2015 saw a 15% sales loss. The Adidas Group acquired Taylormade Golf in 1997: when Adidas merged with the Solomon Group. While Adidas subsequently sold the Solomon Group in 2005, it kept Taylormade, and made it a part of the newly formed Adidas Group. On a more positive note, Herbert Hainer, the chief executive of Adidas, stated that: "Adidas has never been more popular with consumers", and if it were not for the currency crash of the Russian ruble, the Adidas Group would easily project double digit sales growth in 2016.