An analyst says that Nike’s possible exit from golf could “do long-term damage to the brand.”
A recent report that Nike might cut back on some of its golf business makes things even less certain for the Swoosh before next week’s earnings report for the second quarter.
Tiger Woods may no longer be a Nike athlete after this weekend’s PNC Championship, a major golf event. This was reported by the “No Laying Up” golf podcast last week. Nike has sponsored the famous golfer for a long time, but the specifics of their deal have not been made public before.
The podcast also suggested that other Nike golf athletes, like stars like Rory McIlroy, Scottie Scheffler, and Brooks Koepka, might be going through the same thing. It was also said that a golf equipment company might be launching an apparel brand soon.
Reports said that Nike “may be planning to licence out its entire golf business” and cut ties with Woods, McIlroy, Scheffler, and Koepka. In a note to investors on Monday, Poser denied these claims.
“The changes will likely remove Nike’s presence in golf, and will do long term damage to the brand,” Poser said.
Since the early 2000s, Nike golf shoes have been the best on the market. Woods and his signature line helped make the Swoosh’s golf line famous. In the end, this helped bring in casual players and current pros like Mcllroy.
When Woods was seen in April 2022 wearing a pair of all-black FootJoy shoes instead of his usual Nike shoes, he caused a stir. Nike said they were “delighted to see Tiger back on the course” a year after he was hospitalised after a bad car crash.
The podcast also suggested that other Nike golf athletes, like stars like Rory McIlroy, Scottie Scheffler, and Brooks Koepka, might be going through the same thing. It was also said that a golf equipment company might be launching an apparel brand soon.
Reports said that Nike “may be planning to licence out its entire golf business” and cut ties with Woods, McIlroy, Scheffler, and Koepka. In a note to investors on Monday, Poser denied these claims.
“The changes will likely remove Nike’s presence in golf, and will do long term damage to the brand,” Poser said.
Since the early 2000s, Nike golf shoes have been the best on the market. Woods and his signature line helped make the Swoosh’s golf line famous. In the end, this helped bring in casual players and current pros like Mcllroy.
When Woods was seen in April 2022 wearing a pair of all-black FootJoy shoes instead of his usual Nike shoes, he caused a stir. Nike said they were “delighted to see Tiger back on the course” a year after he was hospitalised after a bad car crash.
“The expense cuts mentioned above may be a saving grace for earnings, but not necessarily for the long term value of the brand or the stock,” Poser said.
Ratnakar Lavu, who was Nike’s global chief digital information officer and the company’s top tech executive at the time, quit in February. Soon after, a number of Nike workers posted similar messages on LinkedIn about a change in the way the company hires people.
Nike made $12.9 billion in sales in the first quarter of this year, which is 2 percent more than the same time last year. On Dec. 21, after the markets close, Nike will report its results for the second quarter.
