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Rounds played up slightly but equipment companies continue to struggle
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Although the golf industry looks healthy when Tiger Woods is on TV, the truth is, the industry, from equipment sales to rounds played, continues to struggle mightily.
The latest evidence: According to Golf Datatech, rounds played in the U.S. this past May increased by only 0.9 percent compared to May 2008, meaning they were virtually flat. At public facilities, according to Golf Datatech, rounds played increased 1.3 percent while rounds were down 0.7 percent at private facilities across the country.
Year to date, Golf Datatech reported an increase in rounds played of 1.6 percent over ’08. Rounds played on public courses increased 1.9 percent versus ’08 but private courses reported only a 0.6 percent increase.
Any increases, of course, are good given the rounds-played history of the past few years and the poor U.S. economy, but the industry still has a long way to go to recover and actually grow substantially.
Piggybacking on those rounds-played numbers are the continued struggle of equipment companies. The Acushnet Company (Titleist, FootJoy, Cobra) for example, reportedly has laid off another 77 employees at his plants and distribution center. Those employee cuts are the fifth for the company since May 2008.
Sales at Nike Golf also appear to be struggling, although it’s able to hide its exact figures inside parent Nike Inc. (NYSE: NKE). Nike Inc. Chief Financial Officer Don Blair recently told Wall Street analysts that Nike Golf sales were down 11 percent for the 2009 fiscal year. Nike Golf, Blair said, also posted pretax earning losses in fiscal ’09.
Meanwhile, Callaway Golf Company (NYSE: ELY) stock continues to sink. ELY hit a 52-week low this morning today at $4.66 per share after trading as high s $4.94. Penny stock anybody?
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