TMAG 2015 Annual Financial Report Released

It sure looks like they want to sell. I see a flip side though. If they are going to reduce the number of releases then you need fewer people, can manage inventory more efficiently, can hold the line on prices (ie, increase revenue), EC. They had a 13m loss on a nearly 1B year. It would not take much to turn this into a profitable venture - a small up tick in sales plus the additional savings from staff cuts could do the trick. 1B corporations are hard to create.
 
I'm hoping the M1 and M2 pulls them up a bit. I've hit both and they're seriously awesome.

Irons...I'm not so sure. But I think if they can control their inventory and releases, the TM brand should turn itself around.

Companies don't turn themselves around over night... but I think Callaway has shown it can be done. Obviously with the right people involved.
 
It can be done and less intros of product is a good step. I bet adidas spins them off.


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I too read about the possibility of Adidas selling their golf brands. I also read in the same article that the golf division at Nike wasn't doing too well. I guess these are huge brands, so the golf divisions at these companies is always going to make up just a small fraction of the business.
 
Its really amazing how they just keep trying the same thing repeatedly and hope for better results. The M1 was a step in the right direction and then they botched it by adding the M2 months later.

From an uninformed outsiders perspective (as mine is), it seems very simple what needs to change. First they need a shakeup at the top and a team of managers that can deliver the goals that the new CEO puts in place. They need a strong visionary that can put all aspects of their brand on a concise track and keep it there for a period of years, they need to abandon their disjointed and scattered release schedules, they need a consistent message without all the ridiculous claims and they need to put less emphasis on Tour and more emphasis on reaching their potential customers at a grass roots level.
 
So if Adidas sells off TM, does that mean they offload Adams as well? Could someone buy Adams and restore them as a stand-alone brand, or is Adams essentially donezo?

I've read that they are going to dump Adams and Ashworth and will possibly get rid of Taylormade. It's looking more and more like all three will be either sold or dismantled.
 
Much less likely to buy TM when they don't pump out stuff every 6 months letting me get the last model for dirt cheap.

I know that the general consensus is this, and someone even sent me an article talking about a slow down, but that has VERY little to do with their issues.
To give you an example, they have slowed down releases considerably over the last 30 months.
In those 30 months, they have lost a ton of money.

Meanwhile, just about every other company has escalated release schedule, some more aggressively than others and not had the same financial issues.
 
Did I read that golfweek article correctly where is said they were going to reduce marketing because of increased release cycles?? How does that make sense?? Wouldn't you want to put more money into promoting your product? Either the author Mia understood the financial report (disclosure: I didn't read it), or there's a fundamental leadership problem with TM...
 
I know that the general consensus is this, and someone even sent me an article talking about a slow down, but that has VERY little to do with their issues.
To give you an example, they have slowed down releases considerably over the last 30 months.
In those 30 months, they have lost a ton of money.

Meanwhile, just about every other company has escalated release schedule, some more aggressively than others and not had the same financial issues.

Do you have any info on the market shares for each of the big names? Despite the decline in sales, how does 900 mil in sales compare to others?
 
It sure looks like they want to sell. I see a flip side though. If they are going to reduce the number of releases then you need fewer people, can manage inventory more efficiently, can hold the line on prices (ie, increase revenue), EC. They had a 13m loss on a nearly 1B year. It would not take much to turn this into a profitable venture - a small up tick in sales plus the additional savings from staff cuts could do the trick. 1B corporations are hard to create.

But that sounds a bit like Callaway a few years back.

They had their 2 year cycles, and the multiple TM releases in essence shouted down their own new model hype, and they were stuck with lots of excess inventory.

I'm not sure fewer cycles are the answer... now that their competition has figured out how to play the same game they did I don't think TM can put that genie back in the bottle.

It would be interesting to know a breakdown of those losses. I wonder how much of that loss comes from the ball business, for example.
 
Did I read that golfweek article correctly where is said they were going to reduce marketing because of increased release cycles?? How does that make sense?? Wouldn't you want to put more money into promoting your product? Either the author Mia understood the financial report (disclosure: I didn't read it), or there's a fundamental leadership problem with TM...

i think you're referring to this: It also stated, “In light of management’s efforts to shift to longer product launch cycles, TaylorMade-Adidas Golf will further reduce the number of new product introductions, thus limiting the overall marketing activity.”

I read this to be saying "we are going to stretch our product cycles out longer" (ie not release as many products per year) "and so we aren't going to spend as much on advertising since there won't be as many new products to advertise."
 
i think you're referring to this: It also stated, “In light of management’s efforts to shift to longer product launch cycles, TaylorMade-Adidas Golf will further reduce the number of new product introductions, thus limiting the overall marketing activity.”

I read this to be saying "we are going to stretch our product cycles out longer" (ie not release as many products per year) "and so we aren't going to spend as much on advertising since there won't be as many new products to advertise."

That is what I was referring to, thank you for posting it. My question is why limit the "overall marketing activity?" Seems to be a recipe for declining sales of you ask me. Thinking of other successful products with slow product cycles, they seem to have a robust marketing strategy that's designed to sustain sales levels (Titleist balls, Budweiser and Coors beer, Coca Cola, etc.). I think TM has a talent problem (corporate) and a leadership problem personally.
 
So if Adidas sells off TM, does that mean they offload Adams as well? Could someone buy Adams and restore them as a stand-alone brand, or is Adams essentially donezo?

I see Adams as done other than being bought by a box store like Golfsmith or Golf Galaxy. Either way, it is a brand that will drop off the radar which of course is too bad. They were once pretty strong.
 
I see Adams as done other than being bought by a box store like Golfsmith or Golf Galaxy. Either way, it is a brand that will drop off the radar which of course is too bad. They were once pretty strong.
This was always my fear when they were purchased. Adams had some good performing equipment for a while. In terms of talent, their loss was some other company's gain (WS).
 
This was always my fear when they were purchased. Adams had some good performing equipment for a while. In terms of talent, their loss was some other company's gain (WS).

Very true. And Ben Hogan.
 
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