American Golf’s “reset” leads to upswing in sales and profit
American Golf has said a reset has helped it to deliver an uplift in annual profit following the appointment of Nigel Oddy as chief executive a year ago.
The golf giant has grown its EBITDA to £4.3 million in the 12 months to the end of January 2024 from a loss of £1.4 million in the prior year.
During the period, American Golf worked to control costs and improve its margin, and also introduced new services such as personalised golf products and gifts through its ‘My American Golf’ personalisation service.
Other initiatives have included golf insurance with exclusive offers for American Golf Club Card members, and a free Winter Game Review to keep golfers engaged, practising and connected with the game during the winter months.
The implementation of the new strategy also led to an increase in sales, which rose by 7% year-on-year in the company’s fourth quarter.
Oddy (pictured) said: “We listened to our customers and their feedback has helped inform our strategy for the years ahead. Due to the continued cost of living pressures, customers told us they were reducing their non-essential golf spend last year, but we were able to take action to leverage our core strengths: focusing on data, our own brand products, our omni-channel offering, and our relationship with third parties.
“American Golf has refocused on core retail, including our 88 nationwide stores, to put us in a strong position for FY 2024/25, with exciting plans for this year and onwards. We have a vision to become the ultimate one-stop destination for everything a golfer requires.”
American Golf’s parent company, International Leisure Group, appointed Oddy in April 2023 and his 45 years of experience in retail, including 15 at C-suite level, has served the company well. His CV includes stints at some of the biggest retailers in the UK including Marks & Spencer, House of Fraser, The Range, New Look and Matalan.
Last year, American Golf appointed former New Look executive Elaine Wrigley to its board with the remit to oversee retail, operations and people. The board also includes chairman Richard Cotter, chief financial officer Simon Owers, chief commercial officer Stuart Middlemiss, and marketing director Scott Taylor.
American Golf said the full year performance is in line with is growth target of £8 million EBITDA over the next three years.
Looking ahead, Oddy said: “We expect the golf market to continue to be challenging – however we’re optimistic that we can continue to increase American Golf’s share of that market by focusing on our core strengths. Our reset has put us in a strong position as we make ambitious plans for the future of the business.
“We believe in a truly omnichannel business to best connect with our customers – providing flexibility and convenience for a seamless shopping experience. We look forward to rolling out our new app and web experience, along with refurbishments across our existing estate and the opening of new stores in the next few months.”
