Callaway Golf has announced record net sales for the first quarter of 2019 and increased its earnings per share guidance for the first half and full year 2019.
The positive news saw the company’s share price rise by 2.9% on the New York Stock Exchange on the day of the announcement (May 9).
Callaway’s net sales for the first quarter of 2019 increased by $113 million (28%) to $516 million, a new record for the company, with adjusted earnings increasing by $4 million (4%) to $93 million.
These results were achieved despite an estimated $15 million negative impact from changes in foreign currency rates and reflect the acquisition of the Jack Wolfskin clothing brand in January 2019, which contributed $93 million in net sales in the first quarter of 2019. Sales of golf clubs globally are up 1.7%, golf balls by 12.6%, apparel by 692%, and accessories by 22.4%, when compared to the same period in 2018.
Speaking about the results, Callaway Golf chairman and CEO Chip Brewer said: “We are pleased with our first quarter 2019 results and the strong start to the year in both our golf equipment and soft goods businesses. These results reflect the addition of our Jack Wolfskin business, as well as strong growth in all major product categories and regions. We are especially pleased to be able to deliver these results despite foreign exchange headwinds and flat golf market conditions in the first quarter.”
Brewer added: “Fortunately, given our brand momentum, and the success of our 2019 product lineup, our golf equipment and TravisMathew businesses are exceeding our expectations, allowing us to confirm our full-year net sales and adjusted earnings forecasts.”