Callaway Golf Company has upgraded its guidance for the third quarter and the full financial year after mitigating some supply issues and registering higher-than-expected results at TravisMatthews, Jack Wolfskin and Topgolf in July and August. The group said it has successfully shifted some production out of Vietnam to avoid Covid-related shutdowns that would have created a $55 million hit on its sales, mostly during the third quarter. Its golf equipment segment now has more supply than originally projected, but inventory shortages are not excluded for the fourth quarter depending on the situation in Vietnam. The new financial outlook for 2021 calls for total revenues of between $3,065 million and $3,095 million, up from a previously forecast range of $3,025 million to $3,055 million. This would compare with a turnover of $3,055 million in 2019 and $3,025 million in 2020. The guidance for adjusted Ebitda has been pushed up to a range of $370 to $390 million from $345 to $360 million, with operating expenses for personnel, travel and event-based marketing being moved out of the second half of 2021 to 2022 because of the new Delta variant. The adjusted Ebitda had reached $210 million in 2019 and $163 million in 2020.

Topics