One of the biggest days in the recent history of golf’s publicly traded company finished this afternoon with Callaway Golf hitting a 52-week high of $37.29 per share before closing at $37.18. ELY opened this morning at $35.50 per share.
Titleist and FootJoy parent Acushnet Co., which recorded a 52-week high of $53.99 this past May 17, closed today at $52.73 after opening at $51.52.
The biggest winner of the day, however, was Dick Sporting Goods. The retail sporting goods giant’s stock price rocketed to a 52-week high of $99.90 per share on the heels of a strong first quarter that saw its sales at nearly $2.9 billion – a 119 percent compared to the COVID-ravaged first quarter of 2020. The company reported Q1 2021 earnings of earnings of nearly $363 million vs. a loss of $143 million in Q1 of 2020.
Did the stocks get a bounce from Phil Mickelson’s victory at this past week’s PGA Championship? Probably, with Callaway, Mickelson’s equipment sponsor, being the biggest beneficiary. But golf sales also helped drive Dick’s 2021 first quarter, so Wall Street clearly is banking on the industry – from increases in rounds played to equipment sales – staying hot through the remainder of this second quarter.
As for the third and fourth quarters, Callaway Golf CEO Chip Brewer and Acushnet Co., CEO David Maher each have said they expect a slowdown. The questions are, how much of a slowdown and will the third and fourth quarters be barometers as to whether the golf industry’s rebound the past nine months has been a result of post-pandemic pent-up demand or signs of sustainable growth?
Regardless, there is question that Callaway and Acushnet each have strong runs. Callaway’s stock price, for example, is up 46.9 percent YTD while Acushnet stock is up 26.39 percent YTD.
