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Drop in first- quarter rounds


T


he number of rounds played in the UK during the first quarter of 2016 was 7.5 per cent down on the same period last year,


according to research company Sports Marketing Surveys. Following a disappointing final quarter in 2015,


an extremely wet January resulted in all regions suffering a decrease. The only region which saw increases in both


February and March was the Midlands while the number of rounds played in March in Scotland was the highest for four years. Scotland fared the best overall for the quarter


with a seven per cent increase year on year while the South endured the biggest year-on-year decrease in rounds played – 17 per cent across all three months. This quarter saw unsettled weather from


Storms Gertrude, Henry, Imogen and Katie, which all had a negative effect. SMS also concluded that the Six Nations rugby union championship, which was played throughout February and March and televised live terrestrially by both BBC and ITV, kept people away from the golf course at weekends. Richard Payne, SMS’s sports accounts senior


manager, said: “When you consider the weather we’ve had over the last few months, it’s no surprise the number of rounds played is down. I’m looking forward to seeing how these numbers develop through the year, taking into consideration Danny Willett’s fantastic win at the Masters and the run- up to a monumental summer of golf.”


www.sportsmarketingsurveysinc.com


Callaway in optimistic mood C


allaway Golf is anticipating a sales growth during the


second half of this year aſter unveiling its first-quarter financial results for 2016. Despite a drop in worldwide first-quarter net


sales to £188m from £194m in 2015, the company attributes the potential improvement to better gross margins and reduced operating expenses. “The first quarter of 2016 was a strong start to


the year for Callaway Golf and we are encouraged by how our business is trending,” said Chip Brewer, president and CEO of Callaway Golf. “We are seeing sustained improvements in market dynamics, including less promotional activity and higher average


didas appears to be redoubling its efforts to sell off its golf divisions – TaylorMade, Adams and Ashworth.


selling prices. We are also steadily improving our profitability via operational improvements and our brand momentum by maintaining our leadership position in the club category while building share in our golf ball business, which presents an excellent growth opportunity. “In addition, we had an exceptional start on


Tour. Lydia Ko won the ANA Inspiration, the LPGA’s first Major of the year, and Danny Willett enjoyed a strong win at the Masters. Both won with our new XR 16 driver which is contributing to the buzz around that product. “Looking forward, we will continue to focus on our core business by delivering innovative golf products and by continuing to improve our operational efficiencies.”


www.callawaygolf.com


TaylorMade still up for sale A


The latest news from Wall Street, following a


strategic review that finished in March, is that the company plans only to stay in golf through its adidas apparel and footwear. Adidas bought TaylorMade in 1997 from


then-owner Salomon, a French outdoor footwear company, before swallowing up Ashworth in 2008 and Adams Golf in 2012. Herbert Hainer, the outgoing adidas CEO,


said: “The golf market is not growing at the moment but it’s also not falling further. “TaylorMade is a viable business. However,


we decided that now is the time to focus even more on our core strength in the athletic footwear and apparel market. I am convinced that TaylorMade offers attractive growth opportunities in the future. At the same time,


6 SGBGOLF


the planned divestiture will allow us to reduce complexity and focus our efforts on those areas of our business that offer the highest return.” Hainer, who will be succeeded by Kasper


Rorsted in October, hired Guggenheim Partners LLC last year to look at options for the golf business which analysts estimate lost €100m last year. Mark King, president of adidas in North


America and a former TaylorMade CEO, said: “The decision to sell was made because we should be focusing on the biggest growth opportunities – in running, training and basketball. Every category runs its play until the play doesn’t work any more. Then it’s forced to ask, ‘do we need to do things differently?’ That’s where golf is today. It needs to change some entry points to attract new consumers.”


www.taylormadegolf.co.uk


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