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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.
Topgolf Callaway
Topgolf Callaway
Topgolf Callaway Revenue by Segment
Topgolf Callaway Revenue by Geographic Location
Revenue by Segment
Golf Equipment Revenue
CapyFin.comRevenue by Geographic Location
United States Revenue
CapyFin.comEurope Revenue
CapyFin.comAsia Revenue
CapyFin.comRest of World Revenue
CapyFin.com 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
- Freight container shortage alone is estimated to have a negative $13 million impact on freight costs in 2021
- These gains are not expected to repeat in 2021.