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TMAG 2015 Annual Financial Report Released

SuperStroke
-CRW-

-CRW-

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http://www.adidas-group.com/media/f...f3-f889-43e5-b3c0-bc870d53b964/2015_gb_en.pdf

Some interesting information in the report on the company plans/goals. If you skip to page 147, there is a chart for the 2015 Taylormade sales and they are down for the third straight year. Though only by 11 million (1%) and still pulled close to a billion in sales.

I know this gets beat to death, but their releases have still been strange/staggered. But at a loss of only 1%, are they on track for improvement next year?
 
-CRW- said:
http://www.adidas-group.com/media/f...f3-f889-43e5-b3c0-bc870d53b964/2015_gb_en.pdf

Some interesting information in the report on the company plans/goals. If you skip to page 147, there is a chart for the 2015 Taylormade sales and they are down for the third straight year. Though only by 11 million (1%) and still pulled close to a billion in sales.

I know this gets beat to death, but their releases have still been strange/staggered. But at a loss of only 1%, are they on track for improvement next year?
Click to expand...


I think they will absolutely show a gain over last years sales this year. The product is much better than it has been in a long time. That said they still have some issues to work out but it is a process that wont happen overnight.
 
Maybe I am missing something but page 147 of that report pertains to "Other business"

Edit: I see it
 
-CRW- said:
http://www.adidas-group.com/media/f...f3-f889-43e5-b3c0-bc870d53b964/2015_gb_en.pdf

Some interesting information in the report on the company plans/goals. If you skip to page 147, there is a chart for the 2015 Taylormade sales and they are down for the third straight year. Though only by 11 million (1%) and still pulled close to a billion in sales.

I know this gets beat to death, but their releases have still been strange/staggered. But at a loss of only 1%, are they on track for improvement next year?
Click to expand...


With their new strategy (fewer releases) it will be interesting to see if it helps them financially in 2016! I think some of the other companies are eating into their worldwide sales also.
 
I think with the M1 and M2 on the books, we'll see TM have some gains, if only minor from this 2015 report to the 2016 report.
 
I was speaking to 441 about this yesterday. There are bigger things coming on this news in the near future in my opinion.
 
JB said:
I was speaking to 441 about this yesterday. There are bigger things coming on this news in the near future in my opinion.
Click to expand...


Good or bad in your opinion?
 
Id like to know what the outcome is of this in the next few weeks:






"AS a result half way through last year we started analyzing future options for our golf business". This strategic review is due by the end of 1Q.

Thats code for either:

1. Lots of layoffs
2. Selling the company
3. Disolving the brand

It wont be #3 due to size but I can see #1 happening while they try to find a buyer (#2)
 
This is interesting to me. Not that the amount of advertising is directly proportional to profits, but TMAG seems to dominate most add spaces. Is it a quality issue then?
 
Awkward silence said:
Good or bad in your opinion?
Click to expand...
Depends on how you view it


mikedean441 said:
Id like to know what the outcome is of this in the next few weeks:






"AS a result half way through last year we started analyzing future options for our golf business". This strategic review is due by the end of 1Q.

Thats code for either:

1. Lots of layoffs
2. Selling the company
3. Disolving the brand

It wont be #3 due to size but I can see #1 happening while they try to find a buyer (#2)
Click to expand...

Usually that is correct and I have no reason to believe this will be different.
 
mikedean441 said:
Id like to know what the outcome is of this in the next few weeks:

"AS a result half way through last year we started analyzing future options for our golf business". This strategic review is due by the end of 1Q.

Thats code for either:

1. Lots of layoffs
2. Selling the company
3. Disolving the brand

It wont be #3 due to size but I can see #1 happening while they try to find a buyer (#2)
Click to expand...

I thought #1 was a TaylorMade corporate strategy for years leading up to this.
 
Id love to see just Taylormade specific info from a finance side of things. They show the sales decline (1%), but id love to see everything else on their balance sheet and see how much they are contributing to the company burning through $320M again last year.
 
mikedean441 said:
Id love to see just Taylormade specific info from a finance side of things. They show the sales decline (1%), but id love to see everything else on their balance sheet and see how much they are contributing to the company burning through $320M again last year.
Click to expand...

Are they essentially being propped up by Adidas sales?
 
mr.hicksta said:
Are they essentially being propped up by Adidas sales?
Click to expand...

From a revenue standpoint yes, but my gut tells me Adidas is burning through a large portion of that cash burn, if not more than it, and being offset by the other "groups".

270 page reports are a joke.

Have also heard in casual conversation it appears their are offers out there to buy TM, and are coming in rather low for coompany of that "size"
 
I'm thinking Adidas offloads TM. I'd like to see them get their ducks in a row before releasing products. There is no reason why you should wait several months between releasing the M1 and the M2. Give your potential customers at least 2 choices. Something more of a players option and something more forgiving. I'm not sure it even has to be at a different price point, but at least give them options to hit side by side.

And I know some people love fancy colors and designs on irons, but their current line is hideous. I still think they should have something more traditional looking in a players category and keep the colors/designs on a GI iron.
 
I would guarantee that priority #1 is for adidas to jettison the TaylorMade subsidiary and get back to what they do best; clothing and shoes. Not shocked that layoffs would happen until they sign the deal.
 
I would love to see that as well.

mikedean441 said:
Id love to see just Taylormade specific info from a finance side of things. They show the sales decline (1%), but id love to see everything else on their balance sheet and see how much they are contributing to the company burning through $320M again last year.
Click to expand...
 
Girardcorp said:
I would guarantee that priority #1 is for adidas to jettison the TaylorMade subsidiary and get back to what they do best; clothing and shoes. Not shocked that layoffs would happen until they sign the deal.
Click to expand...

Seems like that would be a death blow to TM as Adidas would surely continue to do well just selling golf clothes, shoes, etc.
 
mikedean441 said:
Id like to know what the outcome is of this in the next few weeks:

"AS a result half way through last year we started analyzing future options for our golf business". This strategic review is due by the end of 1Q.

Thats code for either:

1. Lots of layoffs
2. Selling the company
3. Disolving the brand

It wont be #3 due to size but I can see #1 happening while they try to find a buyer (#2)
Click to expand...
I agree with the general theme and lean toward #2. Most people don't just walk away from a Billion dollar in sales, so dissolving the brand seems unlikely. Layoffs could happen but they already cut so many positions...if other positions were expendable wouldn't they have been let go before? It just looks like #2 to me.
 
mr.hicksta said:
Seems like that would be a death blow to TM as Adidas would surely continue to do well just selling golf clothes, shoes, etc.
Click to expand...

TaylorMade existed before Adidas bought them and they were quite good at it despite being in the shadow of Callaway. Maybe it's time for them to get back there and claw there way out again.
 
the 1% decline is the wrong number to be looking at as no company will rely on currency adjusted figures to assess performance. The "13% on a currency-neutral basis" tells the real story and will be the basis for any strategic review. It also suggest that this is driven by metalwoods and irons which means those categories are performing worse than the above figure and is offset from other areas such a clothing.

without knowing the usual selling patterns of releasing a new club it's hard to analyse though, did the M1 release in October boost sales or did the drawn out marketing campaign have a bigger effect as people waited for the new product... R15 was released in January of 2015 so it's hard to compare to the previous year.
 
Ripe for a downsizing and/or sale of their golf business, which is only 5% of Adidas overall business and has lost money the past couple years. I think it's wise for them to slow down their product release cycles. I also believe Ebay is a factor when it comes to reducing the profitability of golf equipment companies. Guys that I know that buy almost nothing on Ebay do buy their golf equipment there. Certainly more than 50% of my eBay purchases are golf equipment and the rest is mostly ski equipment. It's hard to pay retail prices when I can get drivers that are only a year old for $150 or less.

mr.hicksta said:
I came across this article on Twitter last night.

http://golfweek.com/news/2016/mar/03/taylormade-golf-declines-force-restructuring/
Click to expand...
 
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?
 
deuce said:
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?
Click to expand...

I am sure thats an option as well.
 
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