The Pellucid Perspective - July 2013 - (Page 16)

INDUSTRY SCORECARD Golf Equipment Dollars/Units/Avg Price: On Course Apr 2013 YtD Woods Irons Wedges Putters Bags Balls Shoes Gloves 10% ________________________________________________________________________________________________ n YtD $$s n YtD Units 7% n YtD Avg Pr 6% 5% ________________________________________________________________________________________________ 4% 4% 4% 4% 0% 0% 0% ________________________________________________________________________________________________ –1% –1% –5% ________________________________________________________________________________________________ –4% –4% 0% –8% –8% –8% –10% ________________________________________________________________________________________________ –11% –15% ________________________________________________________________________________________________ –15% –10% –16% –16% –16% –13% –18% –20% ________________________________________________________________________________________________ Source: Golf Datatech p Looking at equipment for the April Year to Date (YtD) period for the On Course channel, the comparable Dollar Sales and Units took a considerable downward turn in April. The outlier is Shoes which continues to post healthy gains in Dollar Sales vs. a strong last year (however last month the YtD gain was 14%, this month it gave back half that gain!). In Clubs, all segments are now showing declines YtD in Dollar sales in excess of 5% being led by Wedges and Putters at -16% each. Industry analyst Casey Alexander has often stated that April is “moving month” for golf equipment, if so then the On-Course channel is playing its way out of contention for the ’13 season based on the above results through April. The key Balls category can be characterized as “holding its own” with flat Dollar Sales results and only a 4% decline in Units despite the poor rounds comparisons (-25% April YtD). Dollar Sales gains in Shoes were driven by gains exclusively in Avg. Price. On the losers’ side, all of the down segments in Dollar Sales are being almost exclusively by Units declines (most likely heavily influenced by rounds influenced by weather). Overall, the channel’s April nosedive pushed the year-to-year decline in Dollar Sales to >5% through four months according to Pellucid’s calculations off the Golf Datatech figures. Golf Equipment Dollars/Units/Avg Price: Off Course Apr 2013 YtD Woods Irons Wedges Putters Bags Balls Shoes Gloves 20% ________________________________________________________________________________________________ n YtD $$s 15% 15% ________________________________________________________________________________________________ n YtD Units 10% ________________________________________________________________________________________________ 9% 8% 7% n YtD Avg Pr 7% 7% 5% 5% ________________________________________________________________________________________________ 3% 2% 2% 1% 0% 0% 0% ________________________________________________________________________________________________ 0% –1% –1% –2% –2% –4% –4% –5% ________________________________________________________________________________________________ –6% –9% –8% –9% –10% ________________________________________________________________________________________________ Source: Golf Datatech p Looking at equipment for the April Year to Date (YtD) period for the Off Course channel, we continue to see a variation vs. the On Course results pattern with Shoes showing similar gains (+15%) but with unique strength in Irons (+9%) and Bags (+5%). Similar to the On Course pattern, Woods and Putters show meaningful declines in Dollar Sales. The key Balls category is gamely struggling with Dollar Sales of -4%, again a respectable showing in the face of incredibly unfavorable rounds played trends through April (-25%). Dollar Sales gains in Shoes were comprised of a balance between Units and Avg. Price while Irons gains were driven exclusively by Unit increases and Bags were driven by Avg. Price gains. On the losers’ side, Woods losses were driven primarily by Avg. Price weakness while Putters declines are primarily driven by a Units deficit. The key Balls segment’s decline in Dollar Sales was driven exclusively by a Units deficiency (again, not surprising and actually showing relative resilience vs. the -25% rounds performance through April). The poor April showing for Off Course now drags the channel to a slight deficit (<5%) in total compared to 2012 through April based on Pellucid calculations off the Golf Datatech figures. 16 The Pellucid PersPecTive July 2013

Table of Contents for the Digital Edition of The Pellucid Perspective - July 2013

The Pellucid Perspective - July 2013
Contents
GolfNow buys FORE! Reservations
An inside look at the Fore!-GolfNow deal
FORE! Reservations sells to GolfNow? Preposterous!
PGA of America, Tour (reluctantly) accept anchoring rule
An ominous April for equipment sales
Pace of play campaign picking up speed
June golf weather impact: Flat, but encouraging
Boomers boost Sunshine State market, but clouds looming on the horizon
Cliffs Communities emerge from bankruptcy, Tiger’s course still on hold
Golf fights back, finally

The Pellucid Perspective - July 2013