In this article, we will discuss the 5 most valuable golf companies in the world. If you want to see more companies in this selection, go directly to the 15 Most Valuable Golf Companies In The World.
5. Under Armor Golf
Market Capitalization: $4.48 billion
Under Armor, Inc. (NYSE:UA) was founded in 1996. However, the company did not enter the golf industry until it launched its golf apparel range in the early 2000s.
The division gained momentum after it signed Jordan Spieth in 2013 at the age of 19. Under Armor, Inc.’s (NYSE:UA) golf division saw its sales triple during the first 12 months of signing Spieth. Although the player was not a big name on the PGA Tour then, the partnership has surely been beneficial as Under Armor, Inc. (NYSE:UA) extended it from 2025 to 2029. The company’s golf line comprises outerwear, shirts, shorts, trousers, and accessories for men, women, and kids. Under Armor, Inc. (NYSE:UA) generated annual revenue of $5.7 billion in 2021.
4. Cobra-Puma Golf
Market Capitalization: $9.32 billion
Cobra-Puma Golf is a Carlsbad, California-based maker of innovative golf equipment. The company also has exposure in the golf apparel, footwear, and accessories categories.
Cobra Golf was founded in 1973 by Thomas Crow, an Australian golf player. The company was acquired by German sportswear manufacturer Puma SE (ETR:PUM) in 2010 as a way to boost the Puma Golf range of apparel, footwear, and accessories that was established in 2005. Cobra-Puma Golf has recently received endorsement by long-drive champions Kyle Berkshire and Gary Woodland. The company has been considered the pioneer of the renowned Baffler fairway wood technology that changed the way how golfers approach long shots.
3. Adidas Golf
Market Capitalization: $63.94 billion
Adidas Golf is a subsidiary of adidas AG (ETR:ADS), a German multinational corporation that designs and manufactures sports clothing and accessories.
The company’s golf division was established in 2003 and focused on producing high-quality golfing equipment and clothing for golfers of all skill levels. Adidas Golf offers a wide range of products, including golf shoes, clubs, gloves, clothing, and accessories. With its commitment to innovation and quality, the brand has become one of the leading names in the golf industry and is trusted by professional golfers and amateur players alike. Interestingly, Adidas Golf sold TaylorMade Golf for $425 million to KPS Capital Partners in 2017.
2. Mizuno Golf
Market Capitalization: $74.79 billion
Mizuno Golf is a part of the Tokyo, Japan-based Mizuno Corp (TYO:8022). The company manufactured its first golf equipment in 1933. Mizuno started exporting its golf clubs to Europe in the 1970s, giving the company widespread global recognition.
Despite the rise of the CAD design in making the irons, the company doubled down on its Grain Flow Forging technology as it believed that the process was more effective in manufacturing precise club heads that improved performance on the golf course. Mizuno is renowned for its high-quality golf equipment, with their JPX and MP series irons and ST and GT driver lines being particularly popular. The company also offers a wide range of other golf equipment, such as wedges, hybrids, and putters, as well as golf bags, apparel, and accessories.
1. NIKE Golf
Market Capitalization: $194.53 billion
NIKE Golf is a product division of the Beaverton, Oregon-based sports and lifestyle footwear, apparel, accessories, and equipment maker NIKE, Inc. (NYSE:NKE).
Nike Golf pulled out of the golf equipment manufacturing segment in 2017 and instead decided to keep its focus on golf footwear, apparel, and accessories aligned with NIKE, Inc.’s (NYSE:NKE) core operations. Experts believe that the company generates a substantial amount of revenue through this division despite being one of the smallest divisions of the corporation. The brand has endorsements by top professionals and receives widespread recognition during leading events. NIKE, Inc. (NYSE:NKE) top line stood at $44.5 billion during FY21. The company does not disclose revenue generated by the golf segment.
Here’s what Madison Funds said about NIKE, Inc. (NYSE:NKE) in its Q2 2022 investor letter:
“NIKE, Inc. (NYSE:NKE) is the largest seller of athletic footwear and apparel in the world. Started from humble beginnings as Phil Knight’s “crazy idea” in a Stanford entrepreneurship class, Nike marked its 50th anniversary this year. By remaining true to its innovative culture, the brand is as strong as ever and continues to generate attractive growth, soon to surpass $50 billion in annual revenue. In addition to the continuous investments in brand innovation and marketing, over the last few years Nike has invested heavily to lay the foundation for multi-channel commerce. Today, Nike generates approximately 40% of its revenues through its online channel and branded storefronts. Empowered by CEO John Donahoe’s “Nike Consumer Direct Offense,” Nike’s ongoing investments are expected to further drive their overall revenue mix towards the direct-to-consumer channel which we estimate will result in substantial margin improvement over the next three to five years.
While Nike’s business in China, which accounts for approximately 20% of revenue, is experiencing challenges today, our due diligence suggests that consumer preference for the Nike brand outside the U.S. remains incredibly strong. Overall, we expect Nike’s broader ecosystem, often referred to as the Nike Marketplace, to continue to leverage the company’s innovation and premier brand to build direct consumer relationships which deepen Nike’s competitive moat and enhance its financial profile. Turbulence in the Chinese market and concerns over consumer spending in the US and Europe enabled us to initiate a position in Nike at an attractive discount to our appraisal of the company’s long-term value.”
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