Web Street Golf Daily Pulse
ANY IDEA WHO SAID THIS? “I think we all knew the forecast was going to be pretty nasty. I can remember there two, maybe three years ago that the Tournament of Champions at Kapalua, being so windy that they canceled play for three straight days. I can remember the Bob Hope scoreboards blowing over, tents being ripped up off the ground. So we certainly see it now and then. It's part of what we've got to deal with. But we love coming here. One, love the course, two, love the accommodations, three, the sponsor is fantastic, four, it gets great support from the community. I think all of those things go into a tournament becoming better and better and getting a better and better field.”
BRAIN TEASER: Lydia Ko is on a roll. Can you guess how many consecutive rounds she has shot under par?
SHARPE LEAVES TMAG: It’s been quite a challenging period for TaylorMade adidas Golf and its parent company, the adidas Group. TMaG bid adieu to his charismatic leader Mark King last May. He was replaced by Ben Sharpe, but now he too is being replaced less than a year later as TMaG’s CEO. David Abeles, who was only rehired by the company in early February as President of TaylorMade and Adams Golf, has ascended to the throne within the TMaG Empire. The announcement came when reports also surfaced that the parent company is forecasting its net income to expand by around 15 percent (in constant currency terms) on average in each of the next five years. At its Investor Day in Herzogenaurach, Germany the adidas Group also projected its revenues to increase at a high-single-digit rate on average per year on a currency-neutral basis until 2020.
The adidas Group has been troubled lately and it’s attempting to put its best face forward to the investment community to reassure that all is well. "The new business plan is built around three major strategic choices: speed, cities and open source," an adidas statement said. How much of this five-year plan Herbert Hainer, adidas CEO, will be allowed to oversee is an open question. The adidas board announced in February that it has launched a search for a successor to the 60-year old, whose contract ends in 2017. Hainer, who has served about 15 years, experienced perhaps his most turbulent year in 2014 as the company's stock dropped 38 percent in value.
Meanwhile, back at TMaG, Abeles will report directly into adidas Group CEO Herbert Hainer. "David has a proven track record of success and leadership excellence. I am convinced that David will lead our golf business into the next era of growth. At the same time, I would like to thank Ben for his passion and many contributions to our company over the last nine years and I wish him all the best for his professional and private future,” Hainer said in a company press release.
Abeles has his work cut out for him, just as Sharpe had before him. Sales of TaylorMade, adidas, Adams, Ashworth products were down 29% in its last fiscal year, as detailed earlier this month. Turning it around won’t be quite so easy; especially when Abeles inherits the blueprints Sharpe has already set out for 2015. While many around the country have yet to set foot on a golf course, let alone think about buying another driver, the goose could already be cooked for TMaG. A strong American dollar will hamper all equipment companies selling their products around the world, which represents on average half of annual sales. Meanwhile, TMaG’s parent company is domiciled in Europe and reports in euros, which means even US sales for the golf division will be converted for accounting purposes. The euro could sink to parity with the U.S. dollar within just three months, driven partly by fears over a Greek exit from the Eurozone, according to analysts.
The true selling season for equipment has yet to completely open for business, but it would seem the edict has been set that TMaG’s parent company will see growth this year, one way or another. The adidas Group set forth a new plan, largely due to declaring its previous one unattainable last July. The reasons cited were the volatility of the Russian market as well as disappointing sales and excess inventory at you guessed it, TaylorMade adidas Golf. Just last month, the company announced it was selling its Rockport shoe division. No pressure for the TMaG crew to deliver in 2015!
WHO WANTS TO GO TO AUGUSTA? SuiteHop, an online booking platform, is now offering tickets to attend this year’s Masters. Practice and tournament round rickets are available from April 6-12, 2015. General passes include access to the course and start at $600 for practice rounds, while tournament rounds are going for $1,600. Hospitality passes are available for an additional cost and include access to the luxury amenities of Club Magnolia, a private 5-star hospitality resort located directly across from the Augusta National’s main gate. Club Magnolia offers guests a three hole putting course, full service business center, cigar terrace and live entertainment, six on-site dining options, on-site concierge with transportation services, complimentary gate shuttle service and more. For more information on the upcoming Masters click here.
THREE THE HARD WAY! Consider it the best use of a mulligan in PGA Tour history. READ MORE>>>
BLOWIN’ IN THE WIND: Charley Hoffman took advantage of calmer afternoon conditions to take the first-round lead in the wind-swept Texas Open, shooting a 5-under 67 on Thursday. READ MORE>>>
LEE TAKES THE EARLY LEAD: Mirim Lee birdied all four par-5 holes and finished with a bogey-free 7-under 65 on Thursday to take the first-round lead in the Kia Classic. READ MORE>>>
ANSWERS: “I think we all knew the forecast was going to be pretty nasty. I can remember there two, maybe three years ago that the Tournament of Champions at Kapalua, being so windy that they canceled play for three straight days. I can remember the Bob Hope scoreboards blowing over, tents being ripped up off the ground. So we certainly see it now and then. It's part of what we've got to deal with. But we love coming here. One, love the course, two, love the accommodations, three, the sponsor is fantastic, four, it gets great support from the community. I think all of those things go into a tournament becoming better and better and getting a better and better field.”--Matt Kuchar after the first round of the 2015 Valero Texas Open.
The 17-year-old New Zealander has 10 straight top-10 finishes and has broken par in her last 25 LPGA Tour rounds and 28 worldwide. She has six LPGA Tour victories and 10 worldwide wins in pro events. She is currently tied for second after an opening round of 5-under par at the Kia Classic.
THE INFORMATION CONTAINED IS BELIEVED TO BE RELIABLE, BUT IT IS NOT GUARANTEED. THE OPINION EXPRESSED IS THAT OF TERRY MCANDREW AND SHOULD NOT BE CONSIDERED A SOLICITATION TO BUY OR SELL SECURITIES IN ANY OF THE COMPANIES DISCUSSED WITHIN THIS NEWSLETTER. CONTENTS OF THIS NEWSLETTER MAY NOT BE REPRINTED OR REBROADCAST WITHOUT THE EXPRESSED WRITTEN CONSENT OF TMAC GOLF