Callaway has a record quarter, Olympic sports test out bubbles, potential Reebok suitors line up, and Take-Two Interactive makes a big offer.
Callaway Sets Record
Mark J. Rebilas-USA TODAY Sports
Callaway Golf had $476 million in net sales during its third quarter, a 12% year-over-year increase and a new company record. Net income reached $52 million during the quarter, up from $31 million a year ago.
A further boost for the company could come through its $2 billion acquisition of Topgolf, which it announced last month. Callaway owned about 14% of the driving-range operator prior to the deal.
Overall golf merchandise sales have boomed during the pandemic, up 42% in the third quarter as golfers are hitting the links more often.
Callaway’s Q3 Growth:
Sales: up 12%
Golf Equipment: up 27%
E-Commerce: up 108%
Denny Medley-USA TODAY Sports
Olympic sports are now turning to bubbles in an effort to ensure the Tokyo Games go off without a hitch in July. A test was held this past weekend in Japan called the “Friendship and Solidarity Competition.”
China, Russia, Japan and the U.S. had 32 gymnasts compete in front of 2,000 spectators after stringent COVID-19 testing. A similar set up with 437 athletes and coaches is in progress for the International Swimming League in Budapest, Hungary.
Replicating similar bubbles next summer could be crucial to keep more than 11,000 athletes healthy at what’s already the most expensive Olympics ever. Japan is spending at least $12.6 billion on the games, with the postponement costing up to another $3 billion.
Natural Grass is Crucial to Reduce Injuries, SGL Technology Makes it Possible
Science shows that the number of injuries on natural grass fields are significantly lower than on artificial turf.
SGL grow lights enable a safe and high quality natural grass field all year long, in any climate, stadium design and sport.
Dr. John Sorochan, University of Tennessee: “We are confident that grow lights can help provide a high quality natural grass surface, and a healthy uniform grass surface results in a safer playing surface.”
Adidas purchased Reebok for $3.8 billion in 2006. Reebok has struggled since the acquisition, accounting for just 7% of Adidas’ $31 billion in revenue last year. Recent reports suggest Adidas CEO Kasper Rørsted could settle for a sale of less than $2.4 billion.
Permira currently owns Dr. Martens and paid $1.7 billion for Golden Goose in February. Triton has invested mostly in manufacturing, health care and business services. VF Corp., which just purchased streetwear brand Supreme, and Anta International Group have also shown interest in buying Reebok.
Take-Two’s Next Move
Take-Two Interactive made a $974 million offer for British game developer Codemasters Group. Executives at Take-Two believe Codemasters’ official Formula 1 racing games would complement its current titles like Grand Theft Auto and NBA 2K.
Codemasters’ revenue has climbed 68% year-over-year and its shares have jumped more than 70% year-to-date on the London Stock Exchange. Analysts expect Codemasters’ fiscal 2021 revenue to reach approximately $158 million; Take-Two’s sales are expected to hit $3.13 billion.
Following a second quarter earnings report that exceeded projections last week, Take-Two’s shares sank more than 15% as markets shifted with news of a promising COVID-19 vaccine trial.
The Orlando Magic Look To Keep Fans And Players Safe
The NBA hopes to return to action very soon. In order to do so, extra precautions will need to be taken in order to keep all parties involved safe from COVID-19.
The Orlando Magic have utilized a partnership with AdventHealth to keep fans safe in this summer’s bubble as well as in the upcoming new season. Read on to learn how!
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ESPN reshuffled its management team in the wake of several top-level departures and the largest layoffs in the company’s history. “Going forward, our newly-formed senior leadership group is poised to drive future success,” President Jimmy Pitaro said.