Buoyed a strong first quarter in Epic driver and accessories sales Callaway Golf Company today reported strong first quarter sales of $309 million – $35 million more than in Q1 of 2016. The company, however, reported earnings of $26 million – $12 million less than in Q1 of 2016.
Callaway’s accessories sales in Q1 increased a whopping 77 percent vs. Q1 of 2016 to $67 million. The company cited its acquisition of bag company Ogio in the first quarter of 2017 and the new apparel joint venture in Japan, which was formed in the third quarter of 2016, as key reasons for the gain in accessories sales.
Driver and metal woods sales in Q1 increased nearly 21 percent versus Q1 of 2016 to $108 million.
“It has been a very strong start to 2017,” said Callaway President Chip Brewer. “Sales of our new products, including the EPIC driver and new Chrome Soft X golf ball, have exceeded our expectations. Business around the globe remains very strong with all major regions reporting sales growth and market share gains. And our new business ventures, namely the apparel joint venture in Japan and the recently acquired OGIO business, are performing ahead of plan.
“Overall, I am very pleased with how our business is performing and am cautiously optimistic for the balance of the year.”
The first quarter numbers gave Callaway bean counters confidence to revise the company’s 2017 net sales estimate to $960 million – $980 million – a $45 million – $50 million over its prior estimate.