Golf is Popping and Callaway (ELY) is Capitalizing

Golf popped in 2020. 3 million people played golf for the first time in 2020, a record number of beginners
LikeFolio data shows that consumers learning how to play golf is still growing. Mentions have increased +22% YoY.

Note this includes all kinds of golf -- hitting the course, taking lessons, going to the driving range, or even going to a venue like Topgolf. This is creating a surge in demand for Callaway. Purchase Intent Mentions are currently pacing +17% YoY. Callaway is already the market leader in golf equipment (clubs specifically), but they also sell golf apparel and recently competed a merger with Topgolf -- meaning the two companies are now fully merged vs. Callaway’s prior minority stake.This is smart. There is crossover in the types of golf people play...and Callaway knows it. According to the National Golf Foundation, off-course golfing is drawing user attention, especially among a female demographic.

• 12.6M who played only on-course golf (average age 50 / 29% female)
• 12.2M who played on AND off-course golf (average age 42 / 21% female)
• 12.1M who played only off-course golf (average age 31 / 45% female)

NGF estimates there were just over 24 million off-course participants last year; just shy of the number of on-course golfers. LikeFolio's Topgolf data suggests the growing number of off-course golfers are taking advantage of its entertainment venue.  Topgolf mentions have increased +15% YoY, and can be expected to continue to rise as the weather improves and regulations loosen. Callaway looks to be positioned for a breakout year.