Second quarter 2016 net sales increased 6.5% to $246 million compared to $231 million for the same period in 2015; second quarter 2016 gross margins increased 90 basis points to 45.0% compared to 44.1% for the same period in 2015.
Callaway Golf Company (NYSE:ELY) has announced its second quarter 2016 financial results, including a 6.5% increase in net sales and a 140% increase in earnings per share compared to the same period in 2015. These results reflect the Company’s continued brand strength, additional hard goods market share gains, increased gross margins and an $0.18 per share gain from the sale of a portion of the Company’s investment in Topgolf International, Inc. The Company also reaffirmed its full year financial outlook for 2016 and provided financial guidance for the third quarter of 2016.
“We are pleased with our performance in the second quarter of 2016,” commented Chip Brewer, President and Chief Executive Officer at Callaway Golf Company. “Despite softer than expected market conditions, we grew our net sales by 6.5% in the second quarter, which was led by increased sales in all product categories and in every major region. We also continued to realize benefits from the many initiatives we undertook during the last three years with gross margins improving 90 basis points and our realizing over $23 million in proceeds from the sale of a small portion of our Topgolf investment.”
Mr. Brewer continued, “Overall, I believe we are performing well in the current environment as evidenced in part by our continued increase in U.S. hard goods dollar market share for the first half of this year. I also believe that we are on track to create long-term shareholder value through our improved core business as well as future growth from areas tangential to the golf equipment business such as our recently formed joint venture in Japan.
“For the balance of this year, however, there could be some additional market risk related to Brexit, the softer than expected market conditions and the impact of those factors on the golf specialty retail channel. Despite this potential short-term market risk, we believe our business is strong and we remain cautiously optimistic about the second half of the year and are therefore reaffirming our full year guidance.”
Callaway Golf www.callaway.com