There were signs this was coming, namely a staff departure and a seemingly strange equipment change by Charl Schwartzel prior to The Open, but still
Mike Stachura's report at GolfDigest.com notes the sale figures which sound great, until they are placed into the context of market share.
Nike, which reported flat to down annual sales in its overall golf business the last two years at just north of $700 million in annual sales (which includes shoes and apparel), has been in the golf business since 1984, but only introduced its first clubs in 2002 with the Pro Combo set of irons. Its sales in 2013 and 2014 were nearly $800 million.
The company has struggled to become a leading player in the equipment business, with market shares in woods and irons that were routinely one-tenth those of leaders Callaway and TaylorMade.
Stachura also recounts some of the products Nike made over the years and features quotes from Tony Finau, who recently moved to Nike and was surprised by the news. There is also a telling quote from a player who noted he never saw Nike's equipment in the bags of his pro-am partners.
Jason Lusk at Golfweek.com assesses the news and notes this on sales:
In its 10-K report for fiscal year 2015, Nike announced a 2-percent decrease in its golf business revenues from 2014. Revenues had dropped to $771 million in 2015, down from $789 million in 2014 and $792 million in 2013.
Will Gray at GolfChannel.com gets this quote from Mark Steinberg about Tiger's status. They have known about the end of Nike's equipment business for a few days.
"Clearly he and I need to be thinking about a change on the hard goods side," Steinberg told GolfChannel.com via phone. "He and I have discussed at length the plan for that, and feel comfortable with what we're going to do going forward. But clearly, there's likely to be a change."
Jeff Ritter at Golf.com also talked to Steinberg and got this regarding Tiger's clothing:
Steinberg declined to reveal which clubmaker he'd first approach, but added: "He's been a longtime icon of Nike Golf and that's not going to change one ounce. He'll remain a loyal and enthusiastic icon of Nike."
Steve Pike at the A Position says Nike never made equipment up to the levels and notes the timing.
Nike decision to cut bait on the equipment side comes at an interesting time in the golf industry. adidas Group has been trying for the better part of the past year to sell TaylorMade; and the Acushnet Company, parent of the Titleist and FootJoy brands, is in the midst of preparing for an Initial Public Offering. Nike’s exit from the equipment business likely won’t have any impact on either of those deals, but it likely will be seen as another black eye for a struggling industry.
They kindly had me back to discuss my recent trip to Scotland, that included seeing and playing more Highlands courses including the great Cruden Bay and Royal Dornoch, as well as Trump Turnberry, Prestwick and Troon.
