Where’s Your Golf Bucks Goin?
As everyone knows, golf is giganto big bucks. The PGA of America says the golf industry generates $62.2 billion a year in sales. That figure made from everything such as hotels, clothing, course costs, media, education and gear. One thing though: golf equipment makers are making nothing.
Last friday an A.G. Edwards analyst explained:
“U.S. demographics for golf are not expected to become more favorable for another 5 years when the average golfer (currently mid 40’s) will be over 50 (50 year olds spend 25% more on golf than those under 50) fueled by aging Baby Boomers.”
Callaway shares fell 11% on the news. Not very pleasing considering the five year chart looks like death valley:
As the New York Times notes, gear makers need a gigantic new product to jump start horribly flat growth. Square drivers are their latest brainstorm. Here’s some reviews from the blogosphere:
The Golf Blog
Hooked on Golf
The Golf Chick
Got more?
February 11th, 2007 at 8:13 pm
a stock worthy post. not wallstrip worthy but my blog worthy.
those new square heads will be a big bust.
February 12th, 2007 at 2:56 pm
[…] Eddie is doing just that at the GolfNow blog. I sent him a few articles this weekend and he put together a great post on the woeful state of the business of golf for the manufacturers. […]
July 25th, 2007 at 6:22 am
I must admit that I hated the look of the square heads when they first arrived on the scene, but after hitting them, I’m ready to buy one myself. lol. They feel very nice and are not difficult to get used to once you’ve hit a few times.