The success of Callaway Golf’s new range of Rogue woods, Odyssey putters and Chrome Soft golf balls has played a major role in the company reporting record third quarter financial results.
Compared to the same period in 2017, Callaway’s net sales have increased $19 million (8%) to a record $263 million. The net sales growth was led by increases in putters (28%), balls (14%), and irons (7%), while a 29% increase was reported in ‘gear, accessories and others’. Among the key products driving sale are the new Rogue range of woods and irons, Chrome Soft balls, and the continued popularity of Truvis balls.
In addition to this sales growth, Callaway also significantly improved its profitability, reporting a 77% increase in income from operations compared to the third quarter in 2017. As a result of this better-than-expected quarter, the company has increased its full year sales forecast by $20 million to $1,240 million, and increased its earnings per share guidance to $1.01-$1.05 compared to an earlier guidance of $0.95-$1.00.
“The third quarter results continue what has been a tremendous year for Callaway,” said Chip Brewer, Callaway’s president and chief executive officer.
“All major regions and product categories continue to perform at a high level, including our TravisMathew business, which we acquired in August 2017. On a year-to-date basis, our net sales increased $205 million (24%) to $1,062 million, a record for the company, while gross margins increased 110 basis points, and adjusted EBITDA increased $73 million or 63% compared to the same period in 2017.”
He added: “This is a result of the continued strength across our entire product line, favourable industry conditions, and in the first half of the year favourable foreign currency market conditions, as well as the investments we have made the last couple of years in our core business and our acquired businesses. I am pleased with our performance this year and remain optimistic about our long-term outlook.”