Contrary to PGA of America President Jim Remy thoughts that the golf industry has “come through this recession in pretty good fashion,” Callaway Golf reported third quarter earnings that were down 8% compared to 2009.
Third quarter earnings totaled $176 million, which is $20 million less than 2009′s $191 million.
From Callaway Golf Company’s chairman, George Fellows “global economic conditions continue to be challenging and the golf industry has not recovered as we had anticipated coming into this year. In fact, overall consumer spending on golf equipment in the United States is down approximately three percent compared to 2009, which was down approximately 14 percent compared to 2008.”
He said that the golf industry felt the effects of the economic crisis later than other sectors of the economy and as such, it’s recovery will also happen after said sectors. He feels the recovery will be delayed into 2011.
Typically the third quarter has been a slow period for many golf equipment companies like Callaway Golf because they front load their products during the 1st two quarters of the year.
I wonder what TaylorMade golf’s Q3 earnings are going to be? They released the Burner 2.0 Irons back in September.
“Our third quarter 2010 net sales reflect these unfavorable conditions, particularly in the United States and Europe, two of our largest markets, and also reflect our reduction in sales promotion activity, which was higher in the third quarter of 2009,” Fellows said.
The company experienced a decline in business across all sectors except for accessories which was up $1.7 million compared to ’09.
Along similar lines, rounds of golf played in the U.S. as of August 2010 were down 4.9% compared to 2009.
Have you noticed a decline in your golf spending habits?
Personally, I haven’t consciously avoided making any golf purchases, which always makes me wonder if it’s something that happens on a subconscious level.. I have played less golf this year, but it’s primarily due to a newborn in the household.
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