As reported in Monday’s Daily Pulse, TaylorMade-adidas Golf is off to a red-hot start to 2012. The company reported first quarter sales were 387 million Euros (approximately $508 million), versus the previous year when it reported 281 million Euros, despite a global economy that has been struggling...
“Our performance at TaylorMade-adidas Golf in the first quarter was simply breathtaking,” stated Herbert Hainer, adidas’ CEO. “With 32% currency-neutral growth, the segment achieved its highest growth in almost nine years. This is even more significant as it comes on top of 20% growth last year. What’s behind the success? Well, it’s the innovative product line-up we have for today’s golfer across all categories. Sales grew at double-digit rates in all club categories, apparel and footwear, with metalwoods up 28% and irons growing 64% being just some of the highlights. Even more importantly, the strong increase in sales allowed TaylorMade-adidas Golf to double its operating profit compared to a year ago,” Hainer stated. According to a TaylorMade press release, putter sales grew by 17%, balls were up 21%, footwear revenues were higher by 32%, apparel sales were up 10% and it experienced triple-digit growth in bags, 116%.
“Looking at the planned acquisition, after already becoming the largest golf company in the world, our mission is now to be the best golf company in the world across all geographies, products and customer demographics, and adding Adams Golf is another important step in achieving that goal. The proposed combination of TaylorMade-adidas Golf and Adams Golf brings together two complementary sets of brands, combining TaylorMade-adidas Golf’s focus on the younger and low-to-mid handicap golfer with Adams Golf’s focus on game improvement as well as senior and women golfers. The total transaction cost is 53 million Euros.”
TaylorMade’s operating results are grouped under adidas’ “other business” category, which includes Rockport, Reebok-CCM Hockey and other centrally, managed brands. The company did not provide a specific breakdown by brand of operating profits for the quarter.