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