Golf Clubs on Stock Market
Golf Clubs on Stock Market
The economy is suffering a down turn all over the world and it seems that no individual sector can remain immune. With the banks and the real estate sectors in free fall and the economies of several nations already in recession, can any one industry really remain unaffected? The leisure and recreation fields are suffering along with everyone else and golf clubs and equipment manufacturers are feeling the pinch as share prices fall. As people have less available disposable income to spend on their hobbies and other non essential items, all industries involved in the golfing field are likely to experience a loss. This could be at the very least a short term loss in profits and the very most a long and winding road toward financial depression.
Only the future will tell exactly what is in store for equipment companies such as Taylor Made and Callaway, and the golf club shore holders and owners around the world. The stock market is doing things that it has not done for a long time, and the prediction of future golf shares prices is very difficult indeed. In the recent couple of months, Callaway – a major manufacturer of golf equipment has cut its full year profit guidance and stated that it will report a loss in the third quarter of its 2008 trading figures. Callaway warned its investors that it was suffering as a direct result of the global and domestic economic conditions and the prevailing lack of confidence and certainty in the market. Other golf manufacturers are sure to be feeling the same pressure as they too try to regain the confidence of a very unsure market.
Financial analysts are saying that golf products are remaining highly discretionary, partly due to the global conditions and the non essential nature of golfing products and services. Golf clubs (Golfschläger) are also feeling the pressure of a very tight and pessimistic marketplace as less people have less money to spend on course fees and equipment hire and purchase. The loss in Callaway shares of 7.4 million in the third quarter alone is a loss of about 12 cents per share, a stark contrast to last years 2 cent per share rise. This fall is due to much less people purchasing golf clubs, golf balls, golf clothing and other associated products. This may be a warning for other industries involved in the sport and recreation fields or indeed anyone who relies on the profit from non essential products and services.
The size of the golf market is huge and international in scope, comprising of golf clubs, equipment manufacturers and even affecting fields such as tourism and golf publications. Only time will tell exactly what will happen with the economy and how the falling share prices of golf related products and services will affect the future of these industries and indeed of the game itself.