Global Edition

TaylorMade-adidas Golf reports record third quarter revenue

12.30am 8th November 2001 - Corporate

TaylorMade-adidas Golf has announced revenue of EUR 438 million for the nine-month period ended 30th September 2001, representing an increase of 22% over the EUR 359 million in revenue during the comparable period of 2000. Revenues for the third quarter increased to EUR 113 million, representing a 19% increase over 2000’s third quarter sales of EUR 95 million.

This represents the tenth consecutive quarter in which quarterly revenues have exceeded those of the prior year and keeps the company on pace to realize 2001 revenue growth in excess of 20%. Revenue growth in both the third quarter and year to date period of 2001 was driven primarily by the company’s metal wood product category. The 300 Series metal woods continued to expand market share in North America, Europe and Asia—while the introduction of the new 200 Steel metal woods also contributed to growth in this category. As a category, metal wood revenue increased by 64% in the third quarter over the same period of 2000 and by 59% for the nine-month period ended Sept. 30, 2001. The company also achieved significant growth in its footwear category where revenues for the nine-month period increased by 32% over the same period in 2000.

Geographically, the majority of the company’s revenue growth was fuelled by continued strength in its Asian and European operations. Year-to-date revenues in Japan increased by 83% over 2000 before the effect of changes in exchange rates, while revenues from European operations increased by 23% in local currency on the strength of that region’s metal wood sales. International operations contributed 51% of the company’s consolidated revenues in the first nine months of 2001 compared to 39% in the same period of 2000. The continued strength in international revenue growth reflects the company’s focus of building a truly global business that takes advantage of the established adidas-Salomon operational infrastructure.

“Our growth in metal wood market share around the world during the third quarter reflects our commitment to two of TaylorMade-adidas Golf’s primary strategic objectives,” said TaylorMade-adidas Golf president Mark King. “These objectives are to achieve metal wood market leadership around the world and to become a truly global business structured to address the needs and opportunities of our world-wide markets. We are pleased with the progress we have made in the past year toward reaching these specific objectives and are confident in our strategy to achieve performance leadership.”

“Like the rest of the golf industry, we face challenges from a slowing market in the United States,” continued King. “We are fortunate to have established a leadership position in the critical metal wood category and to have strong retailer relationships. We believe that by continuing to work closely with our retail partners, we will assist them to meet the challenges they face by providing a strong product offering, innovative marketing and flexible sales programs.”

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