News
Callaway announces record net sales and earnings for Q1 2018
It’s been a great 2018 for Callaway Golf thus far, so it’s not hard to see why CEO Chip Brewer is smiling.
While you’ll want to head over to your preferred financial news site for deep dive into the balance sheet and Q1 results, here are a few highlights from the company’s earnings press release and conference call.
Yesterday, the company announced record sales and earnings for Q1, 2018. Not surprisingly, Callaway increased its sales and earnings estimates for the rest of 2018.
Callaway’s net sales increased $94 million (31 percent) to $403 million in the first quarter of 2018, compared to Q1 2018. Earnings per share increased $0.38 to $0.65.
Woods |
+ 19.7% |
U.S. |
+ 31.9% |
Irons |
+ 61.3% |
Europe |
+ 14.8% |
Putters |
+ 23.8% |
Japan |
+ 49.0% |
Golf Balls |
+ 13.9% |
Rest of Asia |
+ 35.0% |
Gear & Other |
+ 35.3% |
Other |
+ 7.5% |
“It has been a strong start to 2018,” said Chip Brewer, President and Chief Executive Officer of Callaway Golf Company. “Sales across our entire product line, including the Rogue line of woods and irons as well as the new Chrome Soft golf balls, are off to a strong start and we also benefitted from improved foreign exchange rates and market conditions. As a result, our EBITDA increased 95% during the first quarter.
“Business around the globe remains strong with all major regions reporting significant sales growth and our new businesses are performing at or above plan. While I am mindful that the first quarter generally represents the initial sell-in for the new golf season, I am pleased overall with how our business is performing and am cautiously optimistic for the balance of the year.”
What Brewer’s cautious optimism looks like quantitatively: expected 2018 net sales between $1.17 billion and $1.19 billion, compared with a prior guidance of sales between $1.12 billion to $1.14 billion.
Here are a few more remarks of note from CEO Brewer during the earnings conference call
“Revenues were up 31% to $403 million and fully diluted earnings per share, as well as trailing 12-month EBITDA more than doubled. Our new products, particularly the Rogue line of woods and irons, as well as our new Chrome Soft golf balls featuring Graphene are resonating on a global basis, and our new business initiatives continue to perform at or above expectations. We have made and are continuing to make significant investments in our business, which we believe are paying off nicely for shareholders.”
“In the U.S., our revenues were up 32% for the quarter. The quarterly performance was driven by double-digit growth in our core business, as well as the addition of TravisMathew, which had an outstanding quarter as well.”
“For the quarter, Callaway was the number one total hard goods brand, number one in total clubs, woods, irons, and putters. In golf balls, we remain the number two brand with 16.2% dollar share, up 220 basis points year over year.”
You can read the full conference call transcript on Seeking Alpha
And you can find Callaway’s earnings press release here.
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Tour Photo Galleries
Photos from the 2024 Zurich Classic of New Orleans
GolfWRX is live on site this week at the Zurich Classic of New Orleans for the PGA Tour’s one-and-only two-man team event.
As usual, general galleries, WITBs, and pullout albums — including some pretty spicy custom putters and headcovers — await your viewing.
Be sure to check back for more photos from the Big Easy, as we’ll continue to update this page with additional galleries throughout the week.
General Albums
- 2024 Zurich Classic – Monday #1
- 2024 Zurich Classic – Monday #2
- 2024 Zurich Classic – Tuesday #1
- 2024 Zurich Classic – Tuesday #2
WITB Albums
- Alex Fitzpatrick – WITB – 2024 Zurich Classic
- Austin Cook – WITB – 2024 Zurich Classic
- Alejandro Tosti – WITB – 2024 Zurich Classic
- Davis Riley – WITB – 2024 Zurich Classic
- MJ Daffue – WITB – 2024 Zurich Classic
- Nate Lashley – WITB – 2024 Zurich Classic
- James Nicholas – WITB – 2024 Zurich Classic
- Kevin Streelman – WITB – 2024 Zurich Classic
- Rasmus Hojgaard – WITB – 2024 Zurich Classic
- Tom Whitney – WITB – 2024 Zurich Classic
- SangMoon Bae – WITB – 2024 Zurich Classic
- Daniel Berger – WITB – 2024 Zurich Classic
- Rory McIlroy – WITB – 2024 Zurich Classic
- Russ Cochrane – WITB – 2024 Zurich Classic
- Aldrich Potgieter – WITB – 2024 Zurich Classic
- Steve Stricker WITB – 2024 Zurich Classic
- Drew Brees WITB (Legendary New Orleans Saints QB) – 2024 Zurich Classic
- Derek Carr (New Orleans Saints QB) – 2024 Zurich Classic
- Thriston Lawrence WITB – 2024 Zurich Classic
Pullout Albums
- MJ Daffue’s custom Cameron putter – 2024 Zurich Classic
- Cameron putters – 2024 Zurich Classic
- Swag covers ( a few custom for Nick Hardy) – 2024 Zurich Classic
- Custom Bettinardi covers for Matt and Alex Fitzpatrick – 2024 Zurich Classic
- Doug Ghim’s custom Cameron putter – 2024 Zurich Classic
- Patrick Cantlay spotted testing a Scotty Cameron blade putter – 2024 Zurich Classic
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peter collins
May 1, 2018 at 10:56 am
How well do they have to do, befor the prices come down
Jason A
Apr 30, 2018 at 11:58 am
ive been a callaway fan all my life. few years back their stuff was mediocre at best, fast forward to today, love their products now. just got a new rogue set, love everything about it.
8thehardway
Apr 28, 2018 at 9:59 pm
Callaway has been raising the bar for a while and between their great products and outstanding customer service they are beginning to dominate my bag. I’m delighted at their success.
Moses
Apr 28, 2018 at 11:44 am
Love their equipment now.
tda
Apr 28, 2018 at 2:39 am
My Callaway stocks have been doing well all year
Mark King
Apr 27, 2018 at 10:03 pm
Chip is SO hot!
Johnny Penso
Apr 27, 2018 at 10:02 pm
Glad to see them doing well. A healthy golf manufacturer is good for all of us.