Callaway Golf released third-quarter earnings Monday, posting record numbers as golf continues to boom through the Covid-19 pandemic.
|Net Sales||$476 Million||12% Increase|
|Net Income||$52 Million||69% Increase|
|Gross Profit||$201 Million||5% Increase|
|Adjusted EBITDA||$87 Million||53% Increase|
Golfers are “hitting the links” more often amid Covid-19 lockdowns and restrictions, Front Office Sports reports.
- September saw a 25.5% increase in the number of golf rounds played year-over-year, the fifth straight month that surpassed last year’s marks.
- Golf merchandise also rose 42% compared to a year ago in Q3, eclipsing $1 billion.
Let’s not forget: Callaway sent shockwaves through the business world last month after announcing it had reached a deal to buy Topgolf for $2 billion.
- Topgolf, which Callaway already owned 14% of, has 63 locations worldwide, 23 million customers and pulled in rough $1.1 billion in revenue last year.
Looking Ahead: Due to the uncertainty around Covid-19, Callaway did not provide financial guidance for the fourth quarter of 2020.
See our analysis on Callaway’s acquisition of Topgolf. Callaway ($ELY) is a mixed bag. On one hand, I believe the Topgolf integration will benefit golfer numbers in the long-term. But on the other hand, when we return-from-home, the amount of golfers might go down because there will be other competing recreational activities. We haven’t added this stock to consideration because of the conflicting forces of uncertainty.