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Home Daily Golf Briefs Daily Pulse for August 9, 2019

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Web Street Golf Daily Pulse
VOLUME 9, NUMBER 150                                                       
Friday, August 9 2019

ANY IDEA WHO SAID THIS? “I'd love to create some magic that kind of happened in 2013. I really teed off Sunday not thinking I'd have a chance but played a really solid round. One kind of fell my way, actually. If you hang around long enough, that happens, and that's kind of how I remember it. So it would be fun to be in the mix again this week.”

BRAIN TEASER: Two players managed a win on the PGA TOUR this year but didn’t qualify for the for the FedEx Cup playoffs. Who are they?

LESS GOLF / MORE NUMBERS: Callaway Golf reported net sales growth of 13% in the second quarter of 2019 with record second quarter net sales of $447 million, an increase of $51 million. The bottom line reported net income of $29 million. Golf club sales were $223.8 million, a decrease of $9 million from a year ago. Golf ball sales were $68.6 million, up $2.7 million from 2018. The company did not provide a break down in sales by equipment category.

For some perspective, metal wood sales were $94 million for the quarter ending June 30, 2018. Iron sales were $111 million, putters were $27.8 million and ball sales were $65.8 million for the quarter.

Six-month sales for Callaway were $963 million, compared to $800 million for the same period in 2018. It said the Jack Wolfskin business contributed $141 million in sales in the first half. Year-to-date, club sales are $485.5 million versus 490.3 million in 2018. Ball sales are $130.5 million compared to $120.8 million last year.

"We are very pleased with our results for the second quarter and first half of 2019," said Chip Brewer, President and Chief Executive Officer of Callaway Golf in a prepared statement. "Given the success of our 2019 product line and our TravisMathew business to date, and with the Jack Wolfskin business delivering 14% growth in local currency in the second quarter, we were able to overcome significant foreign currency headwinds and increase our guidance for the full year.

WHY? David Maher, Acushnet’s President and Chief Executive Officer spent some time on the company’s recent conference call to Wall Street analysts, to provide some background on its latest acquisition. “The defining characteristics of the KJUS brand are its focus on the dedicated athlete and unwavering passion for product performance and quality excellence. KJUS',” began Maher. “KJUS' Founders, Olympic Champion Lasse Kjus and Didi Serena, from the beginning have viewed wearables as a performance-enhancing equipment category and the company has never deviated from the belief that outerwear must enhance an athlete's ability to excel. These attributes are the most appealing to Acushnet and are the foundation of our future vision for KJUS. The global golf outerwear and apparel market is roughly $4 billion at retail, comprised of some 300 different and mostly regional brands. This acquisition strengthens Acushnet's position in this sizable product category as we now approach this market opportunity with 3 distinct and complementary brands and product strategies.

“FootJoy is our largest and most globally oriented performance position line. Titleist apparel is a super-premium performance play, focused on the Korean and Japanese golf market opportunities,” he continued. “And now KJUS presents us with a range of technical performance opportunities across geographies, style preferences and premium price points. KJUS' origin is in technical, premium skiwear where they have earned a loyal following with discerning skiers who place a premium on performance and styling. KJUS is a proven leader in fabric innovation and the company has a great job translating ski technologies and materials innovation into the golf wearable space. For perspective, the KJUS ski business represents about 60% of the total with golf and lifestyle accounting for the balance. KJUS will be led by company veterans Brook Mackenzie and Nico Serena who are actively engaged in the integration process as we establish an operating model to fortify the brand's entrepreneurial spirit and category focus, invite increased investment in product innovation and design and take advantage of Acushnet's global reach and scale. We think KJUS is a great fit for Acushnet and look forward to helping the KJUS team further develop this compelling growth opportunity.”

Acushnet declined to disclose the size of the business for competitive reasons. It did share through a Securities and Exchange filing the acquisition price for KJUS was $28.7 million.

WEB GEMS:

SURPRISED? Tiger Woods joked that at least he broke 80 after struggling to a four-over-par 75 in the first round at the Northern Trust. The score was the latest indication that all is not well with the 15-times major champion’s surgically fused spine, though his putter also let him down at Liberty National in perfect morning conditions. READ MORE>>>

NOT THE NAME EVERYONE WAS EXPECTING: Troy Merritt’s focus has shifted after tying Liberty National’s course record in the first round of THE NORTHERN TRUST. “We're in a good position now to contend for the championship,” Merritt said. “That's why we tee it up each week. Obviously this week, it's a little bit different with just trying to get into next week and now we can shift our focus from winning the golf tournament.” READ MORE>>>

ANSWERS: “I'd love to create some magic that kind of happened in 2013. I really teed off Sunday not thinking I'd have a chance but played a really solid round. One kind of fell my way, actually. If you hang around long enough, that happens, and that's kind of how I remember it. So it would be fun to be in the mix again this week.”--Adam Scott.

Martin Trainer (Puerto Rico Open) and Jim Herman (Barbasol Championship) are the only players to win on the PGA Tour this year without qualifying for the FedEx Cup playoffs.

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