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NEWS 2019 Callaway Financials

SuperStroke
erock9174 said:
This is key.
Our company had record sales in 2018 as a result of agressive sales and coupons.
Didn’t translate to Margin gains or EBITDA which is our key metric.
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What's interesting is they lost $29.2 M in the quarter vs 28.5 last year the same time.

For the year...the acquisition of Jack Wolfskin contributed to $365M of the $458M in growth.

38% growth year over year when comparing apples to bananas (since 2018 they didn't have the jack Wolfskin business).

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Isn't that the reality of the golf industry nowadays? I think it's very smart to take on various companies who sell soft goods, as the margins have to be better. Add value to the overall portfolio to strengthen the brand overall.

I haven't bothered to read any of the reports because from my perspective, it really doesn't make much of a difference as long as they are still producing quality golf clubs, but I think the acquisitions are a great move for any company trying to make money selling golf clubs.
 
Nice! Hopefully the trend continues for 2020.
 
stock dropped sharply when the report was released, rallied but holding at 5% down
 
mikedean441 said:
What's interesting is they lost $29.2 M in the quarter vs 28.5 last year the same time.

For the year...the acquisition of Jack Wolfskin contributed to $365M of the $458M in growth.

38% growth year over year when comparing apples to bananas (since 2018 they didn't have the jack Wolfskin business).

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Callaway has done a good job with smaller acquisitions such as Ogio and Travis Matthew but I’m a bit skeptical about them growing the Jack Wolfskin brand in the US. I know they are big in Germany and China but there is a lot of competition in the U.S. where Wolfskin, I’m assuming, will try to grow their brand. Most of the REI type outdoor gear shoppers like me already have strong brand loyalty in this space. Time will tell if this was a smart purchase for Callaway.
 
These financials when looked at as a whole do not look very good. At the end of the day Revenue growth is great but if it doesn’t increase profit it is just a story to tell.


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40%. Increase yr/yr revenue? Is that Just in total sales revenue or is this a profit% #? Just curious...
 
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PKorf said:
40%. Increase yr/yr revenue? Is that just favorite print in total sales revenue or is this a profit% #? Just curious...
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Just revenue. An earlier post showed that they actually posted a $29M loss in Q4.

NEWS - 2019 Callaway Financials

A lot goes into it, including their growth in golf balls, acquisition business, etc. Callaway has expanded way beyond just golf clubs..
www.thehackersparadise.com
 
Seeing as my life has only revolved around Sales for my entire professional life,in various businesses,.....seeing any company with a 40% sales increase (revenue) in one single year means one of a few things: 1: their market share grew exponentially, 2: they had a number of acquisitions that contributed to that number, or 3: they just sold the absolute living $hit out of everything they had. It could be one, a couple or a combination of all of those things. It doesn’t really matter what it is or it isn’t, it’s 40% growth in revenue and that’s basically all a sales guy is really concerned with. Lol

However, as a business professional I’d be looking to find a great way to increase that profitability number somehow. But on the front end.....(sales and marketing) I’d be pretty darn happy with my teams performance. I’ve read “lipstick on a pig”, “if it doesn’t increase profit, it’s just a story” and a few other things that make me ponder......if they didn’t find a way to create 40%growth in revenue, where would they be without the said revenue? Adding that much revenue in one year is effing incredible, regardless of how much profit margin is built into it. You either find a way to be more profitable or sell off less Profitable divisions. It’s alllllll a part of the global business model folks.

So, the stock dropped. Hope it dropped enough for you to want to buy some. because I think Callaway is smart enough to figure out how to become more profitable long term due to their endless diversification of products and brands unlike other golf companies. I’ll let you all speculate as to whom those may or may not be.

Kudos Callaway. Keep selling the $hit out of your gear and gaining market share in a multitude of different products and divisions. Just make some tweaks to become more profitable without compromising standards and values.
 
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Nobody is saying ELY is on the brink

Callaway will be fine, stock dropped the cliff late 2018 as well and has been overall rising since (until today/yesterday), no doubt it will continue to have a rising pattern

3 big acquisitions in recent years is going to both increase revenues and increase expenses, unfortunately this led to a posted loss right now

Equipment sales are up, and that's a good thing
 
Had to edit that , as typing one handed and holding a baby made my autocorrect pretty horrific to read haha
 
It felt like 2019 was a strong year for Callaway, but 40% is a huge gain. I would be curious to see how that breaks down and some of the companies they acquired fit into the equation, but either way, 40% is huge.
 
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