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Dec 31, 2020
Topgolf Callaway Q4 2020 Earnings Report
Callaway Golf Company reported record net sales and a 20% increase compared to Q4 2019.
Key Takeaways
Callaway Golf Company announced record net sales for the fourth quarter of 2020, with a 20% increase compared to the same period in 2019. The increase was driven by high demand for golf equipment and a quicker than expected recovery in soft goods business.
Consolidated fourth quarter net sales increased 20% compared to the same period in 2019.
Golf equipment segment saw a 40% increase due to high demand and strong product offerings.
Soft goods segment sales increased 1% versus the same period in 2019.
The company anticipates COVID-19 will continue to negatively impact business in 2021, but to a lesser degree than in 2020.
Revenue by Segment
Revenue by Geographic Location
Forward Guidance
Given the continued uncertainty related to COVID-19, the Company is not providing sales and earnings guidance for 2021 at this time.
Positive Outlook
- Consolidated net sales for the first quarter of 2021 will exceed 2020 net sales
- Soft goods business should strengthen during the balance of the year as the regulatory restrictions subside.
- Opportunities for supply to catch up beginning in the second quarter.
- Full year 2021 gross margin will be approximately the same as in 2019 despite these gross margin headwinds.
- Investments will continue to drive growth in sales and profits
Challenges Ahead
- Continued uncertainty related to COVID-19
- Soft goods business will continue to be impacted by the regulatory shut down orders in Europe and Asia during the first quarter
- Golf equipment business is expected to be impacted by temporary supply constraints caused by COVID-19 during the first quarter
Historical Earnings Impact
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Avg. Return Before/After Earnings
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