Callaway Golf Credits Apparel Business For Q2 Revenue Increase
Callaway Golf’s "bet on apparel to supplement its core golf equipment business paid off" in Q2, with "sales of clothing and related gear sparking" a 13% increase in revenue over Q2 in '18, according to Mike Freeman of the SAN DIEGO UNION-TRIBUNE. Callaway "beat Wall Street analysts’ forecasts for sales and adjusted earnings" for Q2, even though it has been "facing pressure from activist investor Jana Partners over its strategic move toward apparel." Callaway President & CEO Chip Brewer said the company's core golf club and ball business was "essentially flat despite fewer new product launches and tough foreign currency headwinds so far this year." Callaway’s clubs "maintained their top overall market share in the U.S. and Europe." Meanwhile, Callaway’s apparel brands -- which include golf shirt outfit TravisMathew and German outdoor clothing label Jack Wolfskin -- "helped boost apparel sales" 58% YOY. Callaway acquired Jack Wolfskin in January, so its sales "weren’t included" in the '18 numbers. Still, Jack Wolfskin posted a 14% "revenue gain compared with the same quarter a year ago." Overall, Callaway’s revenue "came in" at $447M for Q2, up from $396M a year earlier (SAN DIEGO UNION-TRIBUNE, 8/9). At presstime, shares of Callaway were trading at $18.66, up 7% from the close of business Thursday (THE DAILY).