Callaway Golf predicted another year of robust topline growth in 2022, after revenues in the fourth quarter jumped by 90.0 percent to $711.7 million, benefiting from the addition of Topgolf earlier in the year and “strong momentum” at Jack Wolfskin and TravisMathew. The growth for the new year is expected to be strong despite expectations of lower same-venue sales at the Topgolf business in the early part of it amid the spread of the Omicron Covid-19 variant.

In a conference call with analysts, Bryan Lynch, CFO, said that 2021 was an “outstanding and transformational year” for the company. “The Topgolf business recovered more quickly and significantly than we expected, and demand for our golf equipment and apparel products remained strong and has continued so far in 2022.”

Adjusted Ebitda switched to a positive $14.3 million in the fourth quarter against a loss of $12.5 million the year earlier, driven by a $46 million contribution from the Topgolf business, partially offset by lower adjusted Ebitda in the golf equipment and apparel business. Callaway’s net loss in the quarter narrowed to $26.3 million from $40.6 million the year earlier, as the adjusted loss per share fell to $0.19 from $0.33, better than an analysts’ consensus for an adjusted loss per share of $0.28.

Topgolf contributed $335.8 million to Callaway’s top line and $6.1 million of segment operating income in the fourth quarter, as both walk-in-traffic and event sales exceeded expectations. Same-venue sales were 6 percent above 2019 levels in the quarter and close to 95 percent of 2019 levels for the full year.

In the last three months of 2021, revenues from golf equipment fell by 24.5 percent versus the year earlier to $161.4 million due to a planned shift in production to build new products to be launched in 2022, increased operating expenses, and an unfavorable year-on-year comparison given that Callaway launched several new products in the fourth quarter of 2020. Golf club sales declined by 24.4 percent to $128.8 million, and golf ball sales slipped by 24.8 percent to $32.6 million. The operating loss for the golf equipment segment amounted to $25.0 million compared to a profit of $4.0 million the year earlier, due mainly to the lower revenues.

Callaway’s revenues from apparel, gear and other products increased by 33.4 percent year over year in the fourth quarter to $214.5 million, led by a 39.8 percent increase in apparel to $153.9 million and a 19.3 percent increase in gear and other sales across the TravisMathew, Jack Wolfskin and Callaway brands as compared to the year earlier. The segment’s operating loss narrowed to $2.3 million from $9.7 million in the fourth quarter of 2020.

Jack Wolfskin’s sales were up by an undisclosed amount in the quarter compared with both 2020 and 2019. “The public relaunch of the brand’s fresh new image was positively received by consumers,” said Chip Brewer, president and CEO. “Feedback on pre-books has been outstanding, and we are excited for the year ahead.” Brewer said he was “even more confident” now of achieving a target announced at the time of its acquisition of Jack Wolfskin in 2018 of an Ebitda of “$50 million plus synergies.”

Brewer added that TravisMathew continued to grow at a “roaring pace” in the quarter, with its own retail comp store sales up over 67 percent versus 2020 and e-commerce sales 30 percent higher.

On a geographical basis, fourth-quarter revenues in the U.S. surged by 176.5 percent to $483.2 million while revenues in Europe were 23.5 percent higher at $113.0 million, with a growth of 26 percent in local currencies. Instead, revenues in Japan declined by 12.8 percent, although they were down by a more limited 5.3 percent in constant currencies. Sales in the Rest of the World advanced by 25.6 percent to $68.9 million.

For the full year, Callaway’s revenues increased by 97.1 percent to $3,133.4 million while adjusted Ebitda jumped by 170 percent to $445.4 million from 2020, thanks to the contribution of Topgolf and a resurgence in corporate events. Product revenues alone went up by 30 percent to $2,058.7 million, including a jump in apparel of 40 percent to $490.9 million. Sales of golf clubs grew by 26 percent to $994.5 million, and balls were up by 20 percent to $234.7 million.

After extraordinary items, the group posted a net profit of $322.0 million against a loss of $126.9 million in the prior year. Net earnings increased to $137.9 million from $64.4 million on an adjusted basis.

For 2022, Callaway is projecting that revenues will rise to between $3,780 million and $3,820 million, with Topgolf expected to contribute about $1.5 billion. Positive demand fundamentals are expected to continue for golf equipment and softgoods. Product margins will continue to be under pressure, but selective price increases will offset this. Adjusted Ebitda for the year is seen reaching $490 million to $515 million, assuming a $210 million to $220 million contribution from Topgolf.

For the first quarter, Callaway is guiding for revenues of $1,005 million to $1,025 million and adjusted Ebitda of $130 to $145 million, reflecting its assumption that Covid continues to lessen during the quarter and that the Topgolf business is approaching 2019 levels. Callaway says it will open at least ten new Topgolf venues in 2022, but the openings will be weighted towards the end of the year.