Callaway Golf posts record earnings even as other industries struggle

Business

SOUTHPORT, ENGLAND – MAY 10: General view of a patron taking part in a Callaway Ultimate fit event during Day 2 of the Betfred British Masters at Hillside Golf Club on May 10, 2019 in Southport, United Kingdom. (Photo by Jan Kruger/Getty Images)

CARLSBAD (CNS) – Despite massive economic upheaval in most industries due to the COVID-19 pandemic, Carlsbad-based Callaway Golf Co. Monday reported record net sales and earnings for the third quarter.

“The world is embracing golf in a way that has led to a record quarter for the industry and our company,” said Chip Brewer, Callaway’s president and CEO.

“Our golf business is now experiencing unprecedented demand and our soft goods business is recovering significantly more quickly than we expected; our third quarter results reflect this momentum,” he said. “Our recent investments into our e-commerce capabilities have proven particularly valuable, showing strong growth across all of our business segments this year including 108% growth in e-commerce for our apparel brands in Q3.”

The company had net sales of $476 million in the third quarter, a 12%, or $50 million, increase over the same period in 2019. The company reported third quarter net income of $52 million, a 69% increase compared to $31 million in the third quarter of 2019.

“Although we expect some level of continued volatility due to the ongoing pandemic, Q3’s trends have thus far continued into Q4,” Brewer said. “And — perhaps more importantly — we also now appreciate even more that all of our businesses are likely to be favored in both the realities of the current world and likely consumer trends post-pandemic.

“All of our business segments, as well as the Topgolf business, support an outdoor, active and healthy way of life that is compatible with a world of social distancing,” he said. “These are key factors that will likely be important for consumers over the next several months and will also likely continue post-pandemic.”

Although Callaway’s golf and apparel businesses have been recovering more quickly than was expected, a resurgence in COVID-19 cases around the globe prompted the company to refrain from offering financial guidance for the fourth quarter of 2020.

Most Popular Stories

Latest News

More News