Global Edition

Callaway Announces Record Sales And Profits

3.31pm 11th February 2020 - Corporate

Callaway Golf has announced record full year 2019 net sales of $1,701 million, representing an increase of 37% on its 2018 figures.

The $458 million net sales increase reflects increases in all operating segments, all major product categories and all major regions. Clothing brand Jack Wolfskin, which Callaway acquired in early 2019, contributed $356 million of this sales growth compared to 2018.

Callaway’s Epic Flash range of clubs helped the company to grow sales and profits to new record levels in 2019

Callaway also announced record operating profits of $133 million for 2019, a 3% increase on 2018. Earnings per share decreased to $0.82 for 2019 compared to $1.08 in 2018. This $0.26 decrease is due to $30 million ($0.28) of non-cash purchase accounting adjustments and acquisition-related costs.

Speaking about the latest trading figures, Chip Brewer, Callaway Golf’s president and CEO, said: “2019 was another successful year for our company. In addition to record sales and operating profit, we made great progress executing our corporate strategy of transforming Callaway into a premium golf equipment and active lifestyle company. The acquisition of Jack Wolfskin was an important part of that strategy and our TravisMathew business continues to grow at double-digit rates. All the while, we remained steadfast in our focus on the golf equipment business, which grew over 7%, outpacing the overall golf market and further strengthening our brand positions.”

He added: “Looking forward to 2020, the outbreak of the coronavirus will impact on our business with regard to sales in Asia and on the supply side. It is very difficult, however, to provide an estimate with any degree of certainty given the dynamic nature of this crisis. Our thoughts and prayers are with the people of China, including our employees, customers and their families in that region, as well as those affected by the virus globally. We hope and pray for a speedy resolution.

“While the coronavirus, tariffs and foreign currency rates will provide headwinds in 2020, we are looking forward to another strong year of operational performance, with growth in both our golf equipment and soft goods segments. We also intend to make additional investments in our business in furtherance of our corporate strategy of making Callaway a larger and more diverse company with higher embedded growth prospects and long-term earnings outlook.”

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