Callaway Shares Take Hit After Coronavirus Disrupts Manufacturing
Callaway Golfs shares slid 8.5% yesterday after the company said that it expects to take a $25M "revenue hit this year as the coronavirus outbreak disrupts manufacturing in China," according to Mike Freeman of the SAN DIEGO UNION-TRIBUNE. The golf equipment and apparel firm reported "solid financial results" for FY '19 and its Q4. But Callaways financial outlook "predicts headwinds" in '20 from "coronavirus, unfavorable foreign exchange rates and tariffs." Callaway also plans to "make investments this year to boost its apparel business." The additional spending includes bringing European outdoor clothing brand Jack Wolfskin, which Callaway acquired early last year for $476M, to "North American consumers this summer." For the full year, Callaways revenue increased 37% to $1.7B thanks to "strong golf equipment sales, gains by Callaway-owned golf shirt brand TravisMathew" and $356M in "Jack Wolfskin sales." For its Q4, Callaway's sales came in at $311.9M, about 2% above analysts' expectations (SAN DIEGO UNION-TRIBUNE, 2/12). At presstime, shares of Callaway were trading at $18.73, down .58% (THE DAILY).