CALLAWAY • First quarter sales down 14%
about predicting a sharp recovery.
“As we project forward, I would expect the golf business will recover faster than the apparel business,” he said. “There is quite a bit of pent up demand. Think both of the businesses that we are in — because our apparel is basically golf apparel and apparel for outdoor hiking and camping — do well in a social distancing, new normal environment.”
About 80 percent of U.S. golf courses should be open by mid-may as coronavirus restrictions begin to ease, according to the National Golf Foundation.
Meanwhile, Callaway launched its U.S. e-commerce online store for outdoor clothing brand Jack Wolfskin this week — its first direct foray into the North American market. Jack Wolfskin gear has been previously available on Amazon. The new website is us.jackwolfskin.com.
Acquired last year for $476 million, Jack Wolfskin makes outdoor wear sold mostly in Europe and China today. Callaway’s strategy for growing the brand includes bringing it to the North American market to take on Columbia, North Face and others.
For the first quarter, Callaway posted sales of $442 million, down 14 percent from the same quarter last year. Net income came in at 30 cents per share, compared with 50 cents per share a year ago.
The results were not a surprise. Callaway had largely foreshadowed the quarter when it pre-announced ranges for expected revenue and profit last week.
Golf club and ball sales declined 10 percent year over year, while apparel and bag, visor and other gear sales slid 22 percent.
The company has stopped providing forecasts for the upcoming quarter and full year in the wake of uncertainty surrounding the economic impact from the coronavirus.
Callaway released results Thursday after markets closed. Its shares ended trading unchanged at $13.53 on the New York Stock Exchange.
mike.freeman@sduniontribune.com