The Adidas Group has had some issues for a while with its under-performing golf division around TaylorMade-Adidas Golf, Adams Golf and Ashworth. And it seems as if the German marketer of sporting goods is now coming to terms with this fact. Today, the company presented its Q2 figures, and management hinted that it hired an investment firm to look into TaylorMade and to determine the appropriate fate of the corporation’s golf business. Turnover in the golf category was down by 26 percent – including traditionally strong golf markets like the U.K. and the U.S.
The numbers which Adidas put out today were not bad at all – besides the Three Stripes’ problems in the golf category and in Russia. Sales in the second quarter, compared with 12 months ago, were up by 15 percent to €3.9 billion. The operating profit climbed by 7.6 percent to €234 million.
Those figures are interesting because they had to compete with 2014’s numbers for April through June, right on the eve of the soccer world cup in Brazil. Usually, it is hard for a soccer-driven company to have momentum in a year without a big event in that sport. Adidas did manage, partly with the help of a weaker euro.
Other positive aspects were the Adidas core brand in western Europe and China as well as the overall performance of the Reebok subsidiary after its re-positioning as a fitness brand. For the full financial year, management expects the entire group will have a sales increase by 7-10 percent in reported euros.