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Callaway Stock Up Nearly 30% in 2021

When Callaway Golf raised financial guidance for Q3 and full-year 2021 earlier this month, President and CEO Chip Brewer said the Carlsbad-based company was successfully “navigating the rapidly changing business environment resulting from COVID-19.” 

Brewer’s rosier financial view reflects both Callaway’s “overperformance” and the strength of its increasingly diversified product portfolio, which Brewer said is allowing Callaway to “adapt and react as business conditions change.”


His comments were released before U.S. equity markets opened on Sept. 7. Wall Street reacted positively to his update, sending Callaway shares (NYSE: ELY) up nearly 5%.

Callaway’s stock is up nearly 30% so far in 2021 − and higher by more than 60% over the past 52 weeks.

“While our visibility into the remainder of the year remains murky, our revised guidance reflects the best information we have about the short-term disruption to our supply chain and the continued momentum of our businesses,” Brewer said.


Looking ahead to 2022, Brewer added: “We are excited about the strong growth embedded within our unique platform of businesses and are committed to unlocking additional long-term value for our shareholders.”


According to the update, the company’s Topgolf business performed well ahead of expectations in July and August.  

Callaway spent $2 billion to acquire Topgolf in October 2020, completing the deal in March of this year.


Brewer has called Topgolf’s indoor, entertainment-based business model “the best thing that’s happened to golf since Tiger Woods.”


There are nearly 70 Topgolf locations worldwide, including dozens spread across the U.S. But so far, California has only carded two — in Sacramento and San Jose.


Could America’s Finest City be the site of the Golden State’s next Topgolf? Callaway officials were tight-lipped this week about the possibility of Topgolf teeing it up here — Jeff Newton, Callaway spokesman, said the company had “no comment.”

But the Port of San Diego did confirm this week Callaway remains in negotiations to bring Topgolf to Harbor Island.  Company and Port officials have been discussing the potential development for more than a year.


“Topgolf is still interested in East Harbor Island,” said Brianne Mundy Page, of the Port of San Diego.


“The [Port’s] board had requested additional financial information from Topgolf,” Page added. “We’ve received that information and staff is reviewing it before determining potential next steps.”


In his earnings update, Brewer also said Callaway’s TravisMathew and Jack Wolfskin apparel businesses were showing recent strength, with both brands “exceeding expectations” in the first two months of the third quarter.  

“With more supply than originally expected, the Golf Equipment business is expected to outperform prior guidance for the balance of the year,” Brewer added.


Callaway now expects net revenue in Q3 to be in the range of $850 million to $860 million, up from a previous estimate of $775 million to $790 million.


For full-year 2021, net revenue is now projected in the range of $3.065 billion to $3.095 billion, up from a previous range of $3.025 billion to $3.055 billion.


With a consensus target of $40, analysts remain bullish on ELY, which currently trades around $31 a share.

Boosting the company’s visibility, Callaway clubs and balls are widely used by top-level touring professionals. Two of the game’s stars, San Diego native Phil Mickelson and 2021 Olympic gold medalist and SDSU alum Xander Schauffele, both play with Callaway equipment and travel regularly to Carlsbad to have their clubs fine-tuned at the Ely Callaway Performance Center near Callaway headquarters. 



CEO: Chip Brewer


BUSINESS: Global golf equipment manufacturing.

GROSS REVENUES: $1.59 billion in 2020


EMPLOYEES: 760 in Carlsbad


NOTABLE: Ticker honors company’s legendary founder, SoCal entrepreneur Ely Callaway 


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