Monday, January 18, 2010

Wall Street Journal: What's Nike's 'Plan B'?

Nike hasn't severed its ties to the meal-ticket known as Tiger yet. But, as the Wall Street Journal is reporting, the brand that had virtually nothing to do with golf until it tattooed itself to the game's great, disgraced icon is having second thoughts.
Woods may have helped Nike generate more than $1.5 billion over the last two years, but what has he done for them lately?
With Woods taking an "indefinite" layoff from competition in the glare of scandals surrounding him, Nike must explore other options to stave off declining sales. Fortunately, the brand has two 2009 Major tourney winners _ Lucas Glover (U.S. Open) and Stewart Cink (British) _ as well as the perky prodigy Michelle Wie in its stable.
Credible sources say golf equipment sales were declining at an annual rate exceeding 10 percent even before the sad news surrounding Tiger was unleashed, and Nike hasn't been immune to the swoon.
The question, then, is whether the PGA and all its cohorts can keep on truckin' now that the gravy train is gone.

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