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Home Daily Golf Briefs Daily Pulse for November 2, 2018

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Web Street Golf Daily Pulse
VOLUME 8, NUMBER 215                                                       
Friday, November 2, 2018

ANY IDEA WHO SAID THIS? “It was a building year. I look back at last year, as something that I think will be beneficial for me in the long run. I really believe that. I know that's an easy thing to say looking at kind of the positive in a negative, but there were tangible, mechanical things that I needed to address, and I was able to throughout the season. Unfortunately, I had to play so much towards the end that I couldn't really get it intact. So I stepped on the first tee knowing that I was playing a C-game instead of figuring where my game is at through the first couple rounds. But I've done a lot of good work over the last four weeks, whether it required time off thinking or required actual practice. I've done I think a good balance of that and come in here with confidence.”

BRAIN TEASER: Since 2010, this player has recorded a top-10 in 35% of his starts (78 of 220) and has made the cut in 91% of his 220 starts. Who is he? HINT: He is in this week’s field at the Shriners Hospitals for Children Open.

BUSINESS REMAINS STEADY: The Acushnet Company, parent to Titleist and FootJoy, reported third quarter net sales of $370.4 million, up 6.7% year over year, up 7.0% in constant currency. Net income came in at $7.1 million, down 23.6% year over year. “I am pleased to report that the Acushnet team continues to execute well on our enduring mission to steward two of the most revered brands in golf - Titleist and FootJoy,” said David Maher, Acushnet’s President and Chief Executive Officer. “Our solid third quarter results, performance year to date and positive momentum highlight the strength of our strategy and proven ability to execute. At our core, Titleist Pro V1 golf balls continue to lead the field by a wide margin, accounting for 73% of balls played on the worldwide tours during the 2018 season and 71% of worldwide wins, including all four men’s Major Championships and all five women’s Major Championships. We believe this continued pyramid of influence validation drives dedicated golfers around the world to understand and appreciate Titleist Pro V1 as the clear performance and quality leader.

“Our results in the quarter and year to date were driven by our equipment innovation engine, which has successfully launched new Titleist Ball, Club and Gear and FootJoy Performance Wear products throughout 2018,” continued Maher. “Keys to our sales growth in the quarter included the launch of our new TS drivers and fairways - one of our more successful and comprehensive metals introductions - and the continued strong performance of the new AVX, Tour Soft and Velocity golf balls. In addition, the new 2018 Vokey SM7 wedges, Scotty Cameron Select putters and Titleist 718 irons all continued their strong performance in the quarter. We note that each of these successful, new products was launched within the past 12 months. Looking forward, we are optimistic about our pipeline of new products across all categories and are confident in our ability to maintain this innovation, performance and quality momentum as we head into next season.”

On a geographic basis, consolidated net sales in the United States increased by 10.7% in the quarter. Net sales in regions outside the United States were up 2.1%, up 2.9% on a constant currency basis. On a constant currency basis, Korea was up 4.2% and EMEA up 3.8%.

prov1Acushnet said it saw a 6.0% increase in net sales (6.2% increase on a constant currency basis) of Titleist golf balls primarily driven by a sales volume increase attributed to its new AVX golf balls launched in the second quarter. It reported a 16.9% increase in net sales (17.4% increase on a constant currency basis) of Titleist golf clubs primarily driven by higher sales volume of drivers and fairways resulting from the recently introduced TS models launched in the third quarter and higher sales volume and higher average selling prices of our wedges launched in the first quarter of 2018. Acushnet said it experienced a 0.8% decrease in net sales (0.3% decrease on a constant currency basis) in FootJoy golf wear primarily resulted from a sales volume decline in footwear partially offset by a sales volume increase in apparel.

Year-to-date net sales for the company are $1.29 billion, up 6.7% year over year, up 4.4% in constant currency. Net income is $88.5 million, up 10.1% from a year ago. On a geographic basis, consolidated net sales in the United States increased by 7.0% in the nine-month period. Net sales in regions outside the United States were up 6.4%, up 1.6% on a constant currency basis with Korea up 2.5%, rest of world up 2.2%, and EMEA up 1.6%.

Titleist golf balls were up 3.7% (2.0% increase on a constant currency basis), driven by a sales volume increase, the company said, attributed to its new AVX golf balls and Tour Soft and Velocity balls launched in the second quarter and first quarter, respectively. The gains offset a sales volume decline in Pro V1 and Pro V1x golf balls, which are in their second model year.

Titleist golf clubs are up 19.2% (16.9% increase on a constant currency basis), year-to-date. FootJoy had a 1.3% increase in net sales (1.3% decrease on a constant currency basis). The decrease in constant currency primarily resulted from a sales volume decline in footwear, partially offset by higher average selling prices across all FootJoy categories and a sales volume increase in apparel. “2018 footwear results have been impacted by our decision to exit some lower price points, which we see as a long term positive for the FootJoy brand,” said Maher.

SPONSOR NEEDED/WANTED (AGAIN)! The 2019 edition of the PGA TOUR event previously known as the CareerBuilder Challenge will be returning to PGA WEST as the ‘Desert Classic.’ Name sound familiar?  John Foster, President of the Desert Classic Charities Board of Directors, stated, “The Desert Classic has a phenomenal 60-year history as a major sporting event in the Coachella Valley stemming back to the days of the Bob Hope Desert Classic resulting in over 60 million dollars for local charities. We look forward to working with the Lagardère Sports team in securing a great new partner as our title sponsor and to another 60 wonderful years.”

I KID YOU NOT! Greg Norman has been named Vietnam Tourism Ambassador. In an ongoing effort to promote tourism in Vietnam, the Vietnamese Council of Ministers that includes the Minister of Culture, Sport and Tourism voted unanimously elected Norman as the Tourism Ambassador.

“We are very pleased to appoint Greg Norman as the Vietnam Tourism Ambassador for the period of 2018-2021. With future developments in Vietnam underway, golf tourism is relatively new but represents tremendous opportunity for growth in recreational tourism and foreign investment,” said Nguyen Ngoc Thien, Minister of Culture, Sport and Tourism. “With its favorable geographic position, natural resources and diverse landscape, Vietnam is fast becoming an internationally recognized golf destination and Mr. Norman will continue to help elevate Vietnam’s profile and visibility. With his experience in the international arenas of golf, business, philanthropy, education and environmental design, Mr. Norman’s prestige and influence will contribute to the success of Vietnam’s future.”

THIS ONE IS FOR YOU KID! TaylorMade Golf has announced the Rory Junior Golf Sets. "Growing up, golf was an extremely important part of my life. It allowed me to stay active, enjoy the outdoors and have fun within a competitive sport. I partnered with TaylorMade to design the Rory Junior Set to give kids an easy introduction to golf so they can have the same opportunity I had to fall in love with the sport," said McIlroy.

"We were looking for a gateway for young players to enjoy the game with product built specifically with them in mind. Having a role model like Rory McIlroy to support this new initiative, as well as a program like the PGA Junior League that encourages these youngsters to thrive in the sport, is crucial to encourage them to play well into their adult life. That's why we partnered with Rory and are delighted to support the PGA Junior League by making a direct donation to them," said David Abeles, CEO, TaylorMade Golf

Available starting December 7, Rory Junior Golf Sets are available in two set configurations for boys (4+ and 8+) and one set configuration for girls (8+), each created for a specific size and age range of player. Both sets include graphite shafts that have been flexed specifically for junior swing speeds. Additionally, each set also includes a special St. Bernard headcover, inspired by the headcover found on McIlroy's M3 driver.

Both the Boys & Girls 8 Plus set — designed for ages 8+ and 52" to 60" in height — includes 7 clubs and a bag carries an MSRP of $399 USD. The 4 Plus set will also be offered for players aged 4+ and 42" to 52" in height. It includes 5 clubs and a bag at an MSRP of $299 USD.

WEB GEMS:

DUNNE AND DUSTED? Irishman Paul Dunne carved out a one-shot lead on seven under par after carding a bogey-free 64 on the first day’s play at the Turkish Airlines Open on Thursday. Defending champion Justin Rose, 2016 winner Thorbjorn Olesen of Norway and three-times major winner Padraig Harrington are in a three-way tie for second place at Regnum Carya Golf and Spa Resort. READ MORE>>>

THE NEW RULES: Bryson DeChambeau says he intends to take advantage of a new rule in golf in 2019 that allows players to leave a flagstick in while on the green and will likely begin his efforts at the Sentry Tournament of Champions in Maui. READ MORE>>>

FAST START: Peter Uihlein hit 16 of 18 greens in regulation during his first round at the Shriners Hospitals for Children Open, finishing at 8 under for the tournament. Uihlein finished his round in 1st at 8 under; Robert Streb, Harold Varner III, and Sebastián Muñoz are tied for 2nd at 6 under; and Kevin Dougherty, J.J. Spaun, and Bryson DeChambeau are tied for 5th at 5 under. READ MORE>>>

ANSWERS: “It was a building year. I look back at last year, as something that I think will be beneficial for me in the long run. I really believe that. I know that's an easy thing to say looking at kind of the positive in a negative, but there were tangible, mechanical things that I needed to address, and I was able to throughout the season. Unfortunately, I had to play so much towards the end that I couldn't really get it intact. So I stepped on the first tee knowing that I was playing a C-game instead of figuring where my game is at through the first couple rounds. But I've done a lot of good work over the last four weeks, whether it required time off thinking or required actual practice. I've done I think a good balance of that and come in here with confidence.”--Jordan Speith, who is making his Shriners Hospital for Children debut this week.

Since 2010, Matt Kuchar has recorded a top-10 in 35% of his starts (78 of 220) and has made the cut in 91% of his 220 starts. He sits T19 in the first round of the Shriners, which was suspended due to darkness.

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