Is the Golf Boom over?

May 10, 2022

Callaway (ELY) is considered one of the largest golf brands in the world, providing equipment to golfers on the pro tours to people at local golf clubs.

And with golf season firmly underway, consumer mentions of playing or learning how to play golf, are gaining steam, rising +34% QoQ.

Short term, this trend growth is nearly exactly in line with seasonal rates from last year (just slightly higher).

But a longer-term warning sign may be looming overhead. Here’s what we’re watching:

The Pandemic Lured New Golfers to the Course

According to WUSA9, pandemic shutdowns caused many to discover golf for the first time.

We can see that surge in the chart above.

In fact, a renowned golf teacher said the pandemic resulted in almost the biggest boom they’ve seen, and they don’t think it's going anywhere.

Luckily at LikeFolio, we can analyze this behavior in real-time and break it down to understand how it may impact a major player in the golf space: Callaway (ELY).

Callaway Golf Demand Mention Growth Slips slightly in 22Q1

Consumer mentions of purchasing Callaway products dropped in 22Q1, registering at 7% lower YoY.

So, is Callaway doomed?

Not necessarily.

Anecdotally speaking, Waterville Country Club in Maine recently said it had to cap memberships.

And Callaway demand in the current quarter is pacing for modest improvement: +8% QoQ, and +4% YoY.

But this momentum may not be enough, and many wonder how long this renewed golf interest can last.

Last quarter, Callaway reported revenue of over $3 billion in 2021 and it is set to release 22Q1 earnings data (today) Tuesday, May 10th, after the close.

With inflation surging, and some consumers beginning to tighten wallets, Callaway demand could be in store for a sharp U-turn. Golf club memberships and equipment are expensive, and Callaway could be impacted.

Luckily, we’ll be monitoring this in real-time to understand if/when this happens.

We’ve got a close eye on other key consumer trends like golf to understand what brands are positioned well for future growth and what brands may be hitting a wall.

If you want to learn more about how to tap into LikeFolio’s powerful consumer insights, reach out to schedule a demo.

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