TaylorMade-adidas Golf has announced that currency-neutral sales for the second quarter increased 4% compared to the prior year. In the reporting currency, revenues declined 13% from EUR 203 million in 2002 to EUR 177 million in 2003. During the first six months of 2003, underlying revenues declined 3% compared to the same period in 2002. In euro terms, this represents a decrease of 18% from EUR 379 million in 2002 to EUR 311 million in 2003 and relates primarily to the timing of global product launches and the non-renewal of the Slazenger Golf license. Excluding the EUR 17 million of Slazenger Golf sales that were included in last year’s sales, as part of a licensing partnership with Dunlop Slazenger, currency-neutral sales during the first half of 2003 increased 1% (-14% in reporting currency).
The underlying second quarter growth was primarily a result of increased focus on the adidas Golf brand and the TaylorMade brand irons. On a currency-neutral basis, double-digit quarterly increases were seen in the apparel (18%) and footwear categories (28%), as well as in the iron category (18%). The tremendous growth in apparel is due primarily to the continued strengthening of the adidas Golf brand combined with strong retailer acceptance of the ClimaLite® and ClimaCool® performance segment of the product range. The iron position has strengthened through the rac (relative amplitude coefficient) iron family of OS, LT and MB models. rac irons continue to build momentum and augment the strength of the TaylorMade brand.
“Our strong second quarter results clearly indicate the progress being made this year by our team at TaylorMade-adidas Golf,” said CEO and president Mark King. “Continued consumer acceptance of our golf brands and the results turned in on the PGA Tour are both very clear indicators of our leading position in the golf industry in 2003.”
TaylorMade-adidas Golf Europe has once again played a significant role in the company’s global growth, with sales up 6% from Q2 in 2002. Sales of irons have increased by 20%, putters by 37%, with the TaylorMade brand up 10% in Europe overall. adidas Golf has also performed strongly with footwear sales up 22%, apparel up 16% and a total sales increase of 23% across the brand.
“The domination of our TaylorMade and adidas brands on the PGA European Tour continues to be a driving force behind the growth in our region,” commented John Guest, managing director for TaylorMade-adidas Golf Europe. “In the hardgoods category, our rac irons have enjoyed huge success both on Tour and in-store, with their proprietary technology proving popular with golfers of all abilities. adidas Footwear has continued to make its mark in 2003 by winning the footwear count at 2 PGA European Tour events, with ‘three stripes’ now more visible than ever. It is factors such as these that have been key to the successful sales figures for Europe.”
TaylorMade-adidas Golf will use 2003 to position itself for future growth after sales in adidas-Salomon’s golf division more than doubled over the last four years. After the acquisition of the Maxfli golf brand at the end of last year, TaylorMade-adidas Golf holds strong market positions in all segments of the market: clubs, balls, footwear and apparel. For the full year TaylorMade-adidas Golf forecasts stable currency-neutral sales and an improvement to operating profit through strict cost control.
Mark King added, “At the halfway point of this year we are very confident about achieving and exceeding our annual business plan. TaylorMade is the No. 1 driver, fairway wood and iron on the PGA Tour as well as No.1 driver and iron on the European Tour. There’s a reason why the best players in the world choose TaylorMade, and that’s because it’s the best-performing golf equipment in the world.”
TaylorMade-adidas Golf www.tmag.com
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