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Callaway Golf Company Announces Record Net Sales And Earnings For The Third Quarter Of 2020

Callaway posted record Q3 earnings.
(MWebbMedia)
(MWebbMedia)
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Callaway Golf released third-quarter earnings Monday, posting record numbers as golf continues to boom through the Covid-19 pandemic.

Key Numbers
Metric2020 ResultChange
Net Sales$476 Million12% Increase
Net Income$52 Million69% Increase
Gross Profit$201 Million5% Increase
Adjusted EBITDA$87 Million53% 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.

Justin Oh:

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. 

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