Sports and fashion apparel leader Nike said today, it is moving out of its prestigious golf equipment business sector.
Nike said in a press release that it “will transition out of equipment—including clubs, balls and bags” to focus on footwear and apparel.
Confirming the decison today, while talking to media here, president of Nike Brand Trevor Edwards said “We’re committed to being the undisputed leader in golf footwear and apparel.” However, sources later told us layoffs were announced by the sports brand from afternoon.
Attempts by media to reach to Nike design headquarters in Fort Worth, Texas, were not successful. Nike has entered golf business after 1984, but began making inroads into golf clubs in 2002 only with its trademark Pro Combo set of irons.
Its total sales in the sector had crossed over $800 million in 2014, said sources. The sudden decision to quit the sector has come following the reduced prices of its 2016 line of clubs sold recently. It sold, Vapor Fly drivers at $150 from original $400 and Vapor Fly fairway woods at $100 from initial $250.
Sources, said NIKE has been finding it tough to survive the competing market.
One Nike user told Bloomberg that “I really love their equipment, but I’ll tell you this: In all the pro-ams I’ve played, I’ve never once seen one of my partners using a Nike club.”
Sources, said NIKE has been finding it tough to survive the competition in the market. One Nike user told Bloomberg that “I really love their equipment, but I’ll tell you this: In all the pro-ams I’ve played, I’ve never once seen one of my partners using a Nike club.”
The company had made a name for itself in the industry for its unique designs, sophisticated equipment and technologies, like in sole channels, d cavities used for its metal woods, said industry sources.
A player who entered the contract with Nike said, “I just heard in the last hour so it’s still a little bit of a shock, to say the least, I love the equipment I’m playing now, and it’s a real process to get through to make a change like that. I don’t know exactly what it’s going to mean for contracts, but it’s pretty likely that this time next year I won’t be playing Nike clubs.”