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NEWS 2019 Callaway Financials

SuperStroke
JB said:
A lot goes into it, including their growth in golf balls, acquisition business, etc.
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Callaway has expanded way beyond just golf clubs..
 
DataDude said:
How much of that 40% was organic? That's a huge freaking increase in the golf business. The Epic Flash and Apex 19 seemed to be huge deals in the business. I know drivers drive (pun intended) the business in golf, but surely Epic Flash wasn't 40% bigger than Rogue was it?
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I think that's an important point. I'm skeptical of a major growth in the game without some substantial die off. I feel, at least locally, that golf is growing very slowly, and I'm not one that can contribute to a company achieving year-over-year growth at that level.
 
That’s got to be putting a hurting on some others in the business.
 
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JB said:
Strong year reported for a market share leader can signal a growing industry. For those that enjoy following the business side, here is a look at Callaway’s 2019.

Record year with net sales of 1.7 billion, which was nearly a 40% increase over 2018.

We will be monitoring the other companies and have some info when reporting takes place.
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This is awesome! I will be watching this this year to see how they do. If it continues to increase I will be purchasing stocks for sure!
 
Wow! I wonder if this is more due to Callaway grabbing market share from other manufacturers or if the industry is growing rapidly.
 
Flush with cash. Will be interested in seeing the change from 2019-2020 as some big dawgs have left the company.
 
Wonder how much of that revenue growth was due to Jack Wolfskin acquisition and the fact that they generate a few hundred million a year in revenue. Still an incredibly strong year for Callaway across all its brands.

Edit - I found the answer in their press release. Jack Wolfskin accounted for ~80% of their revenue growth in 2019.
 
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That is a huge increase but that large you'd have to assume they are grabbing a bigger piece of the pie. I doubt golf is growing at anywhere near that rate.
 
vdubtx said:
Wow, that is a great performance. Wonder what their margins were?
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For the fourth quarter of 2018, the Company's gross margin was 38.7% compared to fourth quarter 2017 gross margin of 41.6%. The 290 basis point decrease was primarily due to the overall decrease in sales volume as referenced above as well as higher product costs due to more technologically advanced products in the 2018 product line.
 
They had some good releases, what drives the majority of their income, clubs or balls? I would guess clubs, but you never know.
 
Holy smokes, those are some impressive numbers!
 
Wow 40% is a hell of an increase!! Excited to see what the new VP of global marketing brings to the ranks!
 
Wow. There must be some bonus pay due at Callaway. Excellent work Callaway.
 
Great sales increase but the profit loss is still concerning


Almost Fiddy Plus 2
 
It seems like those numbers are putting lipstick on a pig...

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That sales increase is absolutely mind boggling!
 
Someone smarter than I would have to digest the numbers, but I feel like sales is only half the story.
 
40% growth is unheard of. Congrats to Callaway and all the work those in the company have done to show why they are the number one company in golf.
 
impressive sales gain
 
ArmyGolf said:
Someone smarter than I would have to digest the numbers, but I feel like sales is only half the story.
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key acquisitions in the soft goods market

hard goods up just over 7%
 
That's a huge number! 40%?! Wow. Impressive to say th3 least. Interesting to see some a massive jump after some major investment in R&D. The fan in me is rejoicing. The manager in me is glad I'm not grinding against that type of YOY increase. ?
 
40% is very impressive!!
 
-CRW- said:
It seems like those numbers are putting lipstick on a pig...

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It sounds to me like they were smart to make acquisitions and to diversify So they can or have overall favorable financials when the golf segment stumbles.

Reading the report, they’ve improved quite a bit. I’m surprised to see the operating losses (if I’m reading it correctly). The EPS delta between company and street projection seems unusually large.
 
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Huge sales number YOY but they are forecasting basically no growth in 2020 which along with lower earnings expectations is why the stock is down 4% after hours. It's tough to turn a profit in the equipment business and evidently not that easy with apparel, accessories, and golf balls either.
 
Damn! That’s a good year
 
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