Global Edition

TaylorMade-adidas Golf full year results

8.00am 18th March 2004 - Corporate

TaylorMade-adidas Golf Company (TMaG) has reported currency-neutral sales growth of 4% in 2003. In euro terms, full year revenues decreased 10% to EUR 637 million versus EUR 707 million in 2002. Sales in the fourth quarter of 2003 declined 12% on a currency-neutral basis. This represents a decrease of 21% in euros to EUR 150 million (2002: EUR 191 million) during the three-month period ended 31st December 2003.
The currency-neutral sales growth in 2003 was realized despite the fact that sales comparisons were negatively impacted by the non-renewal of a distribution and licensing arrangement with Slazenger Golf at the end of 2002. Excluding the approximately €25 million of Slazenger Golf sales that was included in prior year’s revenues, currency-neutral sales would have increased by 9% while revenues in euros would have been down 8%.
From a category perspective, solid double-digit increases in the irons, putters, footwear and apparel categories were the drivers of the currency-neutral sales improvement at TaylorMade-adidas Golf.
This growth was largely driven by new product introductions in the hardware categories such as the rac technology, a new type of clubhead construction that dramatically improves feel at impact and that was employed in new irons and wedges in 2003, and expanding product line and market shares of our soft goods products.
Sales of both metalwoods and golf balls, however, declined. This decrease is mainly a result of higher clearance sales in advance of new product launches in 2004. However, with strong product introductions during the year, including a further evolution of the successful metalwood R500 Series, TaylorMade was able not only to remain the world leader in the industry’s largest and most important category but even further strengthened its number one position in 2003.

  • On a regional basis, currency-neutral full year sales increased in North America as well as in Asia.

  • TaylorMade equipment again dominated the world’s major professional golf tours:

  • TaylorMade drivers, fairway woods and irons each ranked No. 1 in usage on the U.S. PGA Tour in 2003.*

  • TaylorMade ranked No. 1 in drivers (including ties) at every U.S. PGA Tour event held in 2003.*

  • TaylorMade drivers and irons each ranked No. 1 in usage on the European Tour in 2003. **

  • In addition, recreational players continued to support the TaylorMade brand, as market share information reported in December 2003 reflected significant increases compared to 2002:

  • TaylorMade metalwoods reached the No. 1 market share position in the U.S. with a value share of 26.3%, compared to 22.9% in 2002.***

  • TaylorMade metalwoods maintained the No. 1 market share position in the United Kingdom with a value share of 29.9%, compared to 29.5% in 2002.**

  • TaylorMade irons experienced significant growth in U.S. market share, from 6.2% in 2002 to 11.0% in 2003. ***

  • TaylorMade’s share of the iron market in the U.K. also grew, from 10.8% in 2002 to 13.2% in 2003. **

“The fact that TaylorMade metalwoods rank No. 1 in market share in the U.S. and U.K., along with the fact that our equipment is favoured by the finest players in the world, is a clear reflection of the quality and performance of our products,” says Mark King, President and CEO of TaylorMade-adidas Golf Company. “Our leadership is the direct result of our commitment to developing new technologies that make TaylorMade metalwoods and irons longer, straighter and easier to hit.”
TaylorMade-adidas Golf at

* Source: Darrell Survey Company brand count statistics
** Source: Sports Marketing Surveys, Ltd. brand count statistics
***  Source:    Golf Datatech, LLC


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