Nike, the world's most recognized sports company announced today they will be no longer be making golf clubs or golf bags. They will focus on apparel and footwear. Their golf clubs sales have declined the past few years despite having good representation on the PGA Tour.
Notable Nike players include Tiger Woods, Rory McElroy, Paul Casey, Tony Finau, Brooks Koepka and Michelle Wie. I would expect these players to finish out the year with their current equipment then explore options with other manufacturers.
Nike has very deep pockets, but they didn't get where they are by making poor business decisions. With a declining market share ( approx. 3 %) in a very competitive business the management decided they could no longer continue losing money.
As a publicly traded company Nike was not able to inform employees before a public announcement was made. I'm sure it came as a shock for employees and associates. I left Dick's in 2010 to open Golf Rx. I had no idea that within 2 years Dick's would fire nearly 600 PGA Professionals with no notice at all. So is the way in the world of business.
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