Callaway CEO Sees Opportunity To Gain Sales Momentum; TaylorMade Sees 30% Sales Jump
Callaway Golf President & CEO Chip Brewer said with the golf equipment industry recovering from some struggles due to the down economy several years ago, there now is an "opportunity for Callaway ... to regain past momentum." Brewer, speaking on Bloomberg TV's "Bloomberg Bottom Line" said, "We’ve been a leader in the industry for many years, one of the best brands. But over the last few years we’ve failed to hold some of that leadership position and sustain some of the moment that we really need.” He noted the company needs to be “more aggressive from a marketing perspective and from a product perspective.” Brewer noted that from a marketing perspective, having players endorse and perform on the PGA Tour “is essential in this business.” In regard to raising Callaway’s stock price, Brewer said, “We’ve got the right assets, we’ve got the brand, we have the resources and now we’ve got the organization in place and organization aligned to go deliver product marketing messages that really cut through in the marketplace and regain market share” (“Bloomberg Bottom Line,” Bloomberg TV, 5/7). Meanwhile, TaylorMade-adidas Golf President & CEO Mark King appeared on Golf Channel’s “Morning Drive” yesterday to discuss the state of the business. King said the company’s Q1 sales were over $500M, “which was more than a 30% increase." King: "Our profitability doubled. ... The numbers are just really outstanding and it’s in all of our product categories also. Footwear, apparel, golf balls are all really, really doing well. I think it speaks to the strength of the brands.” He said, “We believe that products don’t lie. Sales guys can twist things and marketing campaigns can twist, but at the end of the day the products don’t lie. We have such great success on the tour and it’s what’s driving our record sales” (“Morning Drive,” Golf Channel, 5/8).