News of Taylor Made reporting a 25% drop in first
quarter sales "suggests last year's slump in the golf
equipment industry may be continuing," according to Patrick
Harverson of the FINANCIAL TIMES. The "real problem" for
equipment sales as a whole has been in the U.S., where the
industry "suffered a sudden and severe reversal last year as
sales fell by an estimated" 15-20%. Harverson writes that
even though club "prices have recently been cut ... the new
clubs are still not selling well." Harverson: "What has
made the decline in the US all the more remarkable is that
equipment sales have slumped at a time when the US economy
has never been stronger" (FINANCIAL TIMES, 4/13).
NIKE EYES CALLAWAY? The SPORTSBUSINESS JOURNAL's Liz
Mullen writes Callaway shares "shot up more than" 30% after
two Wall Street analysts "predicted that the battered
company may be turning around." Callaway's stock has also
been rising "on unsubstantiated but persistent rumors that
the company could be a takeover target, especially since the
acquirer could buy the company at a low price." Mullen notes
that Nike is "one company rumored" as a potential suitor.
But Callaway VP/Advertising & PR Larry Dorman said that the
company "is not for sale" (SPORTSBUSINESS JOURNAL, 4/12).
