Retail: 67
11.89%
Retail: 186
1.67%
Mon, Aug 28, 2017
Vol 1, Issue No. 33

GOLF
Callaway Building Dallas DC; Acushnet Eyes More Acquisitions

Photo Courtesy of AllianceTexas.

The construction of a 700,000-sq. ft. distribution center near Dallas that will house multiple brands owned by Callaway, including TravisMathew, Ogio and Jack Wolfskin North America, is underway and will continue through 2020 as the company aims to consolidate operations for its brand portfolio.

“Long-term, this (DC) gives us much more capacity and greater efficiency that where we’re currently operating,” said Chip Brewer, ELY’s President and CEO. “It’s one of the synergies of our scale and structure that we are able to do this and deliver the benefits for us in North America. And we’re doing similar projects on a global basis.”

In Q2, Callaway’s revenues rose 13 percent with growth across all business units, regions and major product categories. Jack Wolfskin sales rose 14 percent, bolstered largely by the brand’s DTC business where ecommerce was up double-digits and own retail increased low-single digits on a comp basis. The Carlsbad, CA company, which recently bought out a 48-percent stake in its Japan joint venture for $18 million, is currently forecasting FY19 topline growth of 35-37 percent to a range of $1.685-1.7 billion with Jack Wolfskin forecast to improve sales 7-9 percent on a constant-currency basis.

At golf rival Acushnet, the Fairhaven, MA company is continuing to look for “targeted M&A opportunities” following its July deal for golf and skiwear firm, KJUS. David Maher, Acushnet’s President and CEO called the acquisition “a proven leader in fabric innovation” that has done “a great job translating ski technologies and materials innovation into the golf wearable space.” GOLF executives declined to provide specifics on KJUS annual sales, only providing that 60 percent of the volume is in ski with golf/lifestyle accounting for the balance.

Meanwhile, Acushnet’s Q2 revenues dipped 3.3 percent to $462 million, down less than 1 percent in constant currency with a supply chain shortfall related the global launch of the Phantom X putter negatively impacting results. H1 consolidated net sales were essentially flat in constant currency at $896 million as the company posted solid growth from Titleist golf balls, gear and FootJoy.