Callaway Golf Company beat earnings expectations for the third quarter of 2020 as the sport of golf continued its recent winning streak.
The company reported net sales of $476 million in its third quarter, a 12% increase compared to the previous year. It also reported a profit of $52 million, a 69% increase from $31 million last year
As team sports couldn’t be played amid the pandemic, golf quickly became a top choice among socially distant sporting activities.
“The world is embracing golf in a way that has led to a record quarter for the industry and our company,” said Chip Brewer, Callaway Golf CEO. “”Our golf business is now experiencing unprecedented demand and our soft goods business is recovering significantly more quickly than we expected; our third quarter results reflect this momentum.”
The growth of golf during the pandemic brought in a lot of new players to the sport. Golfing equipment demand for the company increased by 27% in the third quarter.
“People have money to spend on golf equipment because they are not spending it on vacations,” said Tom Stine, partner at Golf DataTech.
September saw the biggest rounds jump yet for the sport with 26% more being played year-over-year, according to Golf Datatech. The increase in rounds played represents about 12 million incremental rounds.
Callaway also grew its e-commerce platform in the third quarter as consumers turned to online shops for apparel and other golfing accessories.
“Our recent investments into our e-commerce capabilities have proven particularly valuable, showing strong growth across all of our business segments this year including 108% growth in e-commerce for our apparel brands in Q3,” said Brewer.