Callaway acquires apparel company, TravisMathew

Laying up is apparently not how Callaway Golf plays. The Carlsbad-based company this week purchased TravisMathew, an apparel company, for $125 million. That’s yet another big investment for Callaway, already the world’s largest golf club maker.

“We are very excited about this acquisition,” said Chip Brewer, Callaway’s president and chief executive officer. “With its golf heritage, culture of product excellence and double-digit growth in the golf and lifestyle apparel business, TravisMathew is a great fit with our business, brands, culture and our strategy to grow in areas tangential to golf.”

Under Brewer’s leadership, Callaway continues its rise from a once struggling firm to one of prominence in the golf industry. This acquisition follows one made in January, when Callaway snatched up Ogio International, which makes premium golf bags and other gear. That deal was for $75.5 million. That purchase also was done to broaden Calloway’s offerings.

This news came as Callaway released its second quarter earnings report. The company’s net sales increased $59 million to $305 million, compared to last year’s second quarter sales. It was a 24 percent jump.

There was more good news: “In addition to the sales increase, the company also recognized a significant increase in operating income. The company's 2017 second quarter operating income increased 135 percent to $49 million as compared to the second quarter of 2016,” it reported.

“We are very pleased with our 2017 first half performance," Brewer said. "This year's product line-up, including the EPIC driver and Chrome Soft golf ball franchise, has resonated strongly with golfers. As a result, our brand momentum has increased and our hard goods market share has increased in every major region, resulting in double-digit net sales growth and double-digit EBITDA growth.”

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