The golf industry is about to undergo some massive restructuring. Some top analysts have been down on the golf equipment business and have advocated steering clear of the industry. Acushnet also owns FootJoy, a leader in the golf shoe space.
Despite the struggling golf equipment industry, the Acushnet IPO suggests the golf ball and apparel market remains strong amid weak golf club sales. Titleist has been the No. The heyday of golf club innovation we experienced in the late '90s and s has slowed considerably. It was during this time that the landscape of golf was changing quickly, with Tiger Woods leading the charge. The innovation of the golf club market was substantial at the time, with rapidly expanding driver heads and irons that were much more forgiving for the casual player.
The golf ball market continues to remain strong, however, and Titleist has been the undisputed leader. The company revolutionized the game with the Pro V1 model that launched nearly 16 years ago. The Pro V1 still remains the most elite ball in golf. The golf ball market may have played key a role in Titleist deciding to go public.
In a recent interview , Callaway Golf Co. The golf ball has the greatest absolute percentage growth potential. We made money in golf ball for the first time in Now we're starting to see nice growth, we're 2 in the category. While other companies, like TaylorMade and Callaway, have made big steps to compete in the golf ball marketplace, it is highly unlikely that anyone takes the No.
Net sales for Callaway actually increased in North America, but declined in every international segment. The Titleist IPO will be an important gauge of the golf industry as a whole, and will be the second major golf brand to be traded publicly along with Callaway Golf Co.
Reuters - Acushnet Company, the owner of golf brands including Titleist and Footjoy, is preparing to register with U. Acushnet is now working with investment banks that include Morgan Stanley MS. S and Nomura Holdings Inc T on the IPO, the sources said on Wednesday. Morgan Stanley could not be immediately reached for comment. The golf industry has tapered over the past several years, as its prime demographic group has aged and millennials have sought pastimes that are less time-intensive and more accessible.
So the small gains for the stock are nothing to write home about. It's like finally hitting a shot onto the green -- after you've already plunked your ball in a water hazard a few times. It's been a long road to an IPO for Acushnet. The company was originally part of the old Fortune Brands conglomerate. Related: Women's golf tournament will stay at Trump-owned course. Fila decided earlier this year that it wanted to spin off a portion of its Acushnet stake.
The timing didn't appear to be ideal though. Acushnet owns some of the most recognizable brands in golf. And it has arguably the best ticker symbol ever considering what the company does. But golf now seems to be a four-letter dirty word. The sport is hurting. Related: Bill Murray is done with boring golf clothes.
It didn't help that only a few of the top-ranked male golfers decided to go to Rio to play in the Olympics -- the first time golf was in the Summer Games since Even though the women's game is thriving, it looks like that isn't enough to move the needle for the sporting goods giants. Nike NKE , which has Tiger Woods as an endorser, announced this summer that it was getting out of the golf equipment business. Related: How Arnold Palmer changed the way sports stars made money.
The House of Swoosh will no longer sell clubs and balls, but it will continue to make golf shoes and other apparel. Under Armour UA made big waves when it signed Spieth to a deal a few years ago. Still, amid all that, there is a positive trend in people playing golf. The most recent rounds-played report from Golf Datatech show declines in August compared to the year before, but overall rounds-played numbers for the year are slightly up versus , a year which saw the first rise in rounds played numbers since The only other golf-equipment company being publicly traded, Callaway saw its second-quarter earnings jumped percent from It expects earnings per share for to be between 40 and 50 cents per share.
It was just 17 cents a share in Under the initial structure of the IPO, Fila owns about a third of the common stock, while financial investors Mirae Funds, predominantly own about two-thirds. There are 13 investment banks already signed on as underwriters, everyone from J.
Clearly, the rich get richer, while the average investor gets left out. Full Leaderboard. By Mike Stachura.
For the second time of the season — and 25th time since the beginning of the calendar year — Titleist was the top choice in every major Kokrak and Na birdied 12 of their last 13 holes during Sunday fourballs, closing in under 60 to win by one shot in Naples, Fla.
Four consecutive back-nine birdies from Nos. Viktor Hovland Pro V1 became the first player to win consecutive events at Mayakoba and established a new tournament scoring record in the process. Take a step inside its sliding glass door with Vokey Wedge rep, There were 50 events played this season on the PGA Tour, the most since Over those 50, a total of players competed in at least one To see some of the process for yourself, check out the video above and take a tour of the factory where Titleist clubs are custom-built with LPGA star At the U.
Of the Not only are new Titleist TSi drivers making their first major championship appearance, but the all-new Titleist Tour Truck is making its first. At Titleist, our main objective is to help golfers play their best. We test and validate the performance of our golf balls with golfers of all skill levels, from Tour players to recreational golfers.
Go Inside the Ropes. View Cart. Search Search. Products Pro V1. See All. Go Inside the Win. View all equipment counts View all equipment counts View all less counts. Brian Harman J. Titleist is trusted by more Tour Professionals than any other brand and is the 1 Ball in Golf. Read Story.
Patrick Cantlay and the Reigning Olympic Champion Go Wire-To-Wire at the Zurich Classic of New Orleans The first victors to lead the event from start-to-finish, the duo broke the tournament scoring record, finishing the four rounds two best ball, two Team Titleist at the Masters The storied history and unparalleled setting of The Masters provides an annual sports experience like nothing else. Related: Bill Murray is done with boring golf clothes.
It didn't help that only a few of the top-ranked male golfers decided to go to Rio to play in the Olympics -- the first time golf was in the Summer Games since Even though the women's game is thriving, it looks like that isn't enough to move the needle for the sporting goods giants. Nike NKE , which has Tiger Woods as an endorser, announced this summer that it was getting out of the golf equipment business. Related: How Arnold Palmer changed the way sports stars made money. The House of Swoosh will no longer sell clubs and balls, but it will continue to make golf shoes and other apparel.
Under Armour UA made big waves when it signed Spieth to a deal a few years ago. But that company is now struggling as well. The only publicly traded golf company that's actually doing well is Callaway Golf, the maker of Big Bertha drivers and other equipment. But the stock has pulled back from its highs lately. And Callaway's stock is still trading well below the peak prices it hit in the late s as recessions in and took their toll.
Golf is an expensive game to play. So the business is not immune to economic slowdowns. But even specialists may not thrive at a time when people just don't seem as interested in heading to the links -- or watching the game as much as they used to on TV.
Acushnet's tepid IPO performance appears to be just the latest bit of bad news for the sport. At best, the stock is a double bogey. We're no longer maintaining this page. Golf legend Greg Norman on how to save golf.
Owner of Titleist launches IPO at $17 a share The parent company of the Titleist golf brand, which has significant operations in San Diego. The IPO comes at a potentially volatile time for the golf industry, which has been coping with a decline in participation over the last decade. The golf equipment maker debuts on the New York Stock Exchange at $17 per share and ends the day at $