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By Steve Pike
Just when you thought the golf equipment financial numbers couldn't get much worse, consider TaylorMade-adidas Golf's first quarter. TMaG parent, adidas AG, reported its golf division lost € 21 million in the quarter on sales of € 194 million. Based on a € /USD currency exchange rate if 1.36, that translates into a loss of $28 million on sales of $264 million. In the first quarter of 2008, TMaG had earnings of € 23 milion ($31 million) on sales of € 191 million ($260 million).
TMaG's in Q1 saw sales declines in the European and Asian markets Q1 numbers but its North American sales increased 10 percent versus 'Q1 of 08 to € 102 million ($139 million).
The first quarter sales number looks respectable, but consider that, for first time, TMaG included Ashworth's sales into the equation. adidas AG reported Ashworth's sales of € 15 million ($20 million) in the first quarter of '09, meanng that TMaG's sales, without Ashworth, were less than the first quarter of '08.
Despite the "all is well'' mantra some grow-the-game pundits continue to chant, TMaG's Q1 numbers are another body blow for the struggling equipment industry that has also seen lower Q1 sales from TMaG's fellow equipment giants Acushnet Company (Titleist, FootJoy, Cobra) and Callaway Golf Co. (NYSE: ELY).
TMaG's Q2 should be better given the early success of the new R9 driver and Burner irons, but it's dug itself a big hole to climb out of the remainder of the year.
TMaG, by the way, led the driver count at The Players, with 52 drivers in play. The company also led the fairway woods count with 103 fairway woods in play.
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