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US sports apparel manufacturer Callaway raises financial outlook
16 Sep 21 2 min read
Callaway Golf Company, a US-based sports equipment and apparel manufacturer, has increased its financial outlook for the third quarter (Q3) and expects revenue to be in the range of $850-$860 million (previous estimate: $775-$790 million). Moreover, for full fiscal 2021, the sales are estimated to reach between $3,065-$3,095 million ($3,025-$3,055 million).
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“I am very pleased with how our teams are navigating the rapidly changing business environment resulting from COVID-19 and its many variants,” Chip Brewer, president and chief executive officer of Callaway, said in a press release. “The updated guidance we are providing today reflects not only the continued overperformance and strength of our diversified portfolio but also our operational flexibility, which is allowing us to adapt and react as business conditions change.”
Amid the supply chain scuffle, the American golf equipment producer has been able to mitigate a significant portion of the Q3 Vietnam supply chain disruption by shifting some production capacity to non-Vietnam suppliers. Based upon further information from its suppliers, the company now estimates that the remaining risk related to the Vietnam supply chain has shifted from the third quarter to the fourth quarter, the company said in a statement.
In the meantime, Callaway’s Topgolf business, particularly its walk-in and social events business, performed ahead of expectations in July and August and the company's TravisMathew and Jack Wolfskin apparel businesses exhibited continued brand momentum with both brands exceeding expectations in the first two months of the Q3. With more supply than originally expected, the Golf equipment business is expected to outperform prior guidance for the balance of the year, the company added.
“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. Looking ahead to 2022 and beyond, 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,” Brewer concluded.
Fibre2Fashion News Desk (JL)
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