Subscribe
Font Size
Join our Mailing List
DailyPulse
Home Daily Golf Briefs Daily Pulse for October 26, 2018

golfbiz

Web Street Golf Daily Pulse
VOLUME 8, NUMBER 210                                                       
Friday, October 26, 2018

ANY IDEA WHO SAID THIS? “It's always a funny time of year, really, because the new season has started but you're also coming to what feels like the end of the year. You're trying to get off to a great start for your 2019 campaign on the PGA TOUR and trying to finish strong on the 2018 European Tour Race to Dubai, but you are also looking forward to a break at the same time. For me, this time last year, I started to play really well and won a few tournaments right at the back end of the year, which made a huge difference.”

BRAIN TEASER: This player lost a six-shot lead in the final round at the HSBC Champions a year ago. Can you name him?

BUYER BEWARE: The ongoing trade war between Washington and China is likely to be something golfers feel next year. While the holiday season is fast approaching, it might behoove the smart shopper to recognize prices are headed higher in a couple of categories next year. “It's largely headgear and bags that are affected right now and it's only nominal for 2018,” reported Brian Lynch, Callaway Golf’s CFO. “Going into 2019 the Reg is scheduled to go from 10% to 25%, and that would have an impact on us. We're currently estimating a $4 million $5 million effect from next year.” Don’t expect Callaway or any other business, regardless of industry, to absorb those costs completely. That will be the job of the consumer to do so!

OPPORTUNITY IS STILL OUT THERE: The acquisitions of OGIO in January 2017 and TravisMathew ($124.6 million, an all-cash transaction) in August of 2017 seem to be working well in the early going for Callaway Golf. “We are still on track to hit about the $80 million for the year,” stated Brian Lynch, Callaway Golf’s CFO regarding TravisMathew’s annual sales. “We're trending towards that.” Chip Brewer, Callaway’s CEO added, “It's growing at a rate faster than 20% and has for some time.”

TravisMathew, a golf and lifestyle apparel company, sees its annual revenues predominately from North America. Under Callaway, it is branching out to international markets. “The European team has also been investing in resources to launch OGIO and TravisMathew in their markets with nice progress being made,” said Brewer. “We probably sell a little bit there (Europe and Japan) right now. But it's very small, depending on the market you have to get a distribution base set up. In those various markets we had to work through previously distributors and now we're running it through subsidiaries, and that was the transition originally, and then in Asia you have to develop sizing options, et cetera specific for that market,” he explained. “Sometimes some small stylistic differences, so and then showrooms, distribution systems, et cetera, all this back end work that goes with that. So, modest revenue probably did occur this year. It'll be a nice percentage gain over that next year. Probably not meaningful on the whole thing, but long-term it is attractive, and we hope we'll trend towards a meaningful.”

The company also acquired Toulon Golf in 2017, to complement its putter business. How is Toulon doing? “The Toulon brand is gaining strength but it's still quite small,” reported Brewer. “It is less than 10% of our Putter business ($86.1 million through 9-months). It's probably growing very quickly but still a very small percentage of our total putter market. I'm more pleased with what I see from the brand and strength of that product line going forward. I think that positions it well. But if you look at the overall putter categories Scotty Cameron still has a dominant position in the milled premium side, and we have a dominant position in the technology face insert based premium side of the business.”

WEB GEMS:

SUGGESTED PRICE? Golf fans in the United States will be charged a “suggested” price of $19.99 to watch the pay-per-view exhibition between Tiger Woods and Phil Mickelson in November, Turner Sports announced on Thursday. READ MORE>>>

ONWARD AND UPWARD: Patrick Reed had a Ryder Cup he’d like to forget and spent three weeks at home in Texas preparing to finish the year strong. He was at his best Thursday in the HSBC Champions. Even in blustery conditions, Reed putted for birdie on every hole at Sheshan International and closed out his bogey-free round with a 25-foot birdie putt for an 8-under 64, giving him a two-shot lead over Tony Finau and Xander Schauffele. READ MORE>>>

ANSWERS: “It's always a funny time of year, really, because the new season has started but you're also coming to what feels like the end of the year. You're trying to get off to a great start for your 2019 campaign on the PGA TOUR and trying to finish strong on the 2018 European Tour Race to Dubai, but you are also looking forward to a break at the same time. For me, this time last year, I started to play really well and won a few tournaments right at the back end of the year, which made a huge difference.”--Justin Rose. He won the 2017 WGC HSBC event, which earned him 550 FedExCup points, which he eventually went on to win by a margin of 34 points!

Dustin Johnson lost a six-shot lead in the final round a year ago at the HSBC Champions. He failed to make a birdie or better during a PGA TOUR round for only the seventh time in his career as part of his final round 5-over-par 77.

THE INFORMATION CONTAINED IS BELIEVED TO BE RELIABLE, BUT IT IS NOT GUARANTEED. THE OPINION EXPRESSED IS THAT OF TERRY MCANDREW AND SHOULD NOT BE CONSIDERED A SOLICITATION TO BUY OR SELL SECURITIES IN ANY OF THE COMPANIES DISCUSSED WITHIN THIS NEWSLETTER. CONTENTS OF THIS NEWSLETTER MAY NOT BE REPRINTED OR REBROADCAST WITHOUT THE EXPRESSED WRITTEN CONSENT OF TMAC GOLF