Golf Stocks Skyrocket Even Without A Major Technological Breakthrough!

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Whatever it is, the way you tell your story online can make all the difference.

Remember when we used to hear how the game only can grow with club buying opportunities?

The wretched pandemic continues to make tee times hard to get. Meaning, voila, club and ball sales are through the proverbial roof.

You mean, just having more people play for some reason was the key all along? Not a big breakthrough overcoming regulatory hurdles?

Shocked I tell you.

Progolfweekly with this on Titleist and Footjoy parent Acushnet:

Titleist and FootJoy parent has adjusted upwards its outlook for the full year 2021. The company said it expects sales to be in the range of $1.79 billion to $1.87 billion – up approximately 14 percent at the midpoint compared to 2020.

Acushnet reported Q1 sales of $581 million and earnings of $85 million, each up significantly from Q1 of 2020 when the Covid-19 pandemic was beginning to impact businesses across the country.

“Of course, these expectations assume no significant worsening of the impact of the COVID-19 pandemic including additional significant incremental closures of global markets and additional supply chain disruptions,” said Tom Pacheco, Acushnet’s Chief Financial Officer.

“With a very strong first quarter and the second quarter, which we expect to be about 75 percent to 80 percent higher than 2020.

“We project very healthy first half sales gains as compared to both 2020 and 2019.”

Callaway is thriving on the back of club and ball sales along with a couple of shrewd acquisitions. From Mike Freeman in the San Diego Union Tribune:

The Carlsbad company relied heavily on its core club and ball business to drive financial results as the once stagnant game continues its renaissance. Rounds played surged 24 percent in the U.S. alone during the first quarter, according to industry research firm Golf Datatech.

More surprising was the solid performance in Callaway’s apparel arm. Its TravisMathew and Jack Wolfskin brands did well despite lingering COVID-19 restrictions in important markets. Emerging e-commerce sales led the way.

Callaway’s overall revenue rose 47.5 percent to $652 million compared with the same quarter last year. Adjusted net income reached $77 million, or 62 cents per share -- up from adjusted earnings of 31 cents per share a year ago.

Despite the uptick in profit, the company warned of likely cost increases in the coming year, Steve Pike notes.

The stocks are soaring: