June 14, 2021
With a record number of new golfers teeing off in 202 Carlsbad, California-based Callaway—a manufacturer and marketer of golf balls, clubs, bags and apparel—has been thriving and thinking about “big green” beyond the fairways on which its products usually are seen, CNBC reports.
Callaway announced in May first-quarter net revenue of $652 million, a 47% increase from a year earlier.
“Callaway pre-Covid was already the number one brand in sticks, I call it, which is putters, drivers and irons,” Jefferies analyst Randy Konik told CNBC. “They were outpacing industry growth and they were also number two in balls behind Titleist.”
The 40-year-old company also has made moves to expand. In March, the company completed its merger with golf entertainment business Topgolf, which combines virtual driving ranges with food 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,” said Callaway CEO Chip Brewer.
Last year, almost 37 million players teed off at a golf course or participated in an off-course activity like a driving range. Nearly one-third of the U.S. population watched, read about,or played golf in 2020.
But with movie theaters, travel, and concerts expected to rebound, CNBC questions: “Will golf club-makers like Callaway and its rival Acushnet be able to maintain their momentum?” Only time will tell.
Research contact: @CNBC