With a report variety of new golfers teeing off in 2020, Callaway, the maker of golf balls, golf equipment, baggage and attire, has been thriving.
Callaway introduced in May first-quarter internet income of $652 million, a 47% improve from a yr earlier.
“Callaway pre-Covid was already the number one brand in sticks, I call it, which is putters, drivers and irons,” stated Jefferies analyst Randy Konik. “They were outpacing industry growth and they were also number two in balls behind Titleist.”
Callaway has made strikes off the golf green as properly. In March, the corporate accomplished its merger with golf leisure enterprise Topgolf, which mixes digital driving ranges with meals and cocktails.
“This is a transformative merger. It creates an entity that doesn’t really replicate anything that currently exists, with the leader in golf equipment merging with the leader in golf entertainment,” stated Callaway CEO Chip Brewer.
Last yr, nearly 37 million gamers teed off at a golf course or participated in an off-course exercise like a driving vary. Nearly a 3rd of the U.S. inhabitants watched, examine or performed golf in 2020.
But with film theaters, journey and concert events anticipated to rebound, will golf club-makers like Callaway and its rival Acushnet be capable to preserve their momentum?