May 11, 2021 | BY AAGD STAFF
The game of golf is growing by leaps and bounds, thanks to the excellent playability that social distancing provides. The pandemic, as awful as it has been and the devastation that it has caused, the virus has given ‘new life’ to the game of golf. No longer is it presumed true that golf an only grown with the introduction of new equipment and technology.
More people are out playing and learning the sport, freeing themselves from the stoic isolation of that self-quarantining can bring out. Over the last few months golf courses have been seeing a strong rise in tee time bookings and their overall revenue has reflected the playing surge.
A STRONG FORECAST
Titleist and FootJoy parent has adjusted upwards its outlook for the full year 2021, according to ProGolfWeekly.com The company said it expects sales to be in the range of $1.79 billion to $1.87 billion – up approximately 14 percent at the midpoint compared to 2020.
Acushnet reported Q1 sales of $581 million and earnings of $85 million, each up significantly from Q1 of 2020 when the Covid-19 pandemic was beginning to impact businesses across the country. “Of course, these expectations assume no significant worsening of the impact of the COVID-19 pandemic including additional significant incremental closures of global markets and additional supply chain disruptions,” said Tom Pacheco, Acushnet’s Chief Financial Officer.
“With a very strong first quarter and the second quarter, which we expect to be about 75 percent to 80 percent higher than 2020.
“We project very healthy first half sales gains as compared to both 2020 and 2019.” Acushnet’s second half sales in 2021 are expected to be lower than 2020, primarily due the impact of COVID-19 pandemic that saw an artificial surge in sales in the back half of 2020 when golf courses and pro shops re-opened en masse after being shuttered for months due to the crisis.
Acushnet reported Q1 sales of $581 million and earnings of $85 million, each up significantly from Q1 of 2020 when the Covid-19 pandemic was beginning to impact businesses across the country.
“Of course, these expectations assume no significant worsening of the impact of the COVID-19 pandemic including additional significant incremental closures of global markets and additional supply chain disruptions,” said Tom Pacheco, Acushnet’s Chief Financial Officer.
“With a very strong first quarter and the second quarter, which we expect to be about 75 percent to 80 percent higher than 2020.
“We project very healthy first half sales gains as compared to both 2020 and 2019.”
Callaway is thriving on the back of club and ball sales along with a couple of shrewd acquisitions. From Mike Freeman in the San Diego Union Tribune:
The Carlsbad company relied heavily on its core club and ball business to drive financial results as the once stagnant game continues its renaissance. Rounds played surged 24 percent in the U.S. alone during the first quarter, according to industry research firm Golf Datatech.
More surprising was the solid performance in Callaway’s apparel arm. Its TravisMathew and Jack Wolfskin brands did well despite lingering COVID-19 restrictions in important markets. Emerging e-commerce sales led the way.
Callaway’s overall revenue rose 47.5 percent to $652 million compared with the same quarter last year. Adjusted net income reached $77 million, or 62 cents per share — up from adjusted earnings of 31 cents per share a year ago.
