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The golf business is booming during the pandemic: Morning Brief

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Rounds played are increasing and the golf business is following suit.

During the COVID-19 pandemic, keeping social distance from others has become the most important and easiest way to slow the spread of the virus.

golf. And as a result, the entire golf industry has been booming during the summer of 2020." data-reactid="25">And few recreational activities offer an integrated social distancing protocol as easily as the sport of golf. As a result, the entire golf industry boomed during the summer of 2020.

Golf Galaxy and also sells golf apparel, equipment, and accessories at Dick’s locations — reported second quarter results that smashed expectations." data-reactid="26">On Wednesday, Dick’s Sporting Goods (DKS) – which owns Golf Galaxy and also sells golf apparel, equipment and accessories at its Dick locations – reported second-quarter results that broke expectations.

Sales of the same store reported by Dick increased 20.7% during the second quarter, even with 15% of locations closed, on average, during the quarter. According to data from Bloomberg, Wall Street analysts were looking for sales at the same store to increase by less than half that amount.

Dick’s second quarter revenue was $ 2.71 billion, with earnings per share of $ 3.21 per share. Online sales at Dick’s, which include curbside pickup, were up 194% in the second quarter. Shares of Dick’s were up 15.6% during Wednesday’s session.

golf segment. An area that Dick’s management expects will continue to be a point of strength for the company through the rest of the year." data-reactid="29">And a standout during the quarter is what the company saw in its golf segment. An area that Dick’s management expects will continue to be a strength for the company for the rest of the year.

golf business has been great both at Dick’s and [Golf] Galaxy,” said Dick’s CEO Ed Stack on the company’s earnings conference call on Wednesday." data-reactid="30">“The golf business has been great at both Dick and [Golf] Galaxy, ”Dick CEO Ed Stack said Wednesday during the company’s earnings conference call.

football or soccer or some other sport,” Stack added. “So they’re out playing [golf]. Guys are out playing golf because they’re not at their kids’ games. Men, women, and kids have really all jumped into this game and we expect that to continue through the balance of the year, too.”" data-reactid="31">“There are a number of young people who have come into the game because they don’t play soccer or football or some other sport,” Stack added. “So they are playing [golf]. The kids are out playing golf because they aren’t playing their kids. Men, women and children have really thrown themselves into this game and we expect it to continue throughout the rest of the year. “

Stack cited the ongoing PGA TOUR playoffs, the upcoming US Open (to be held September 17-20) and The Masters (November 12-15) as positive catalysts for recreational golfers who retain interest. for sports after the related COVID surge in enthusiasm.

golf is one of those categories that’s going to be...very good,” Stack said." data-reactid="33">“So we think golf is one of those categories that is going to be … very good,” Stack said.

Golf Foundation showed that in June, national rounds played were up 13.9%, indicating that up to 8 million more rounds were played in June compared to last year. This followed a 6.2% increase in rounds played in May, the first month that many courses were open after mandated shutdowns in the spring." data-reactid="34">The latest figures from the National Golf Foundation showed that national rounds played increased by 13.9% in June, indicating that up to 8 million more rounds were played in June than last year. This followed a 6.2% increase in rounds played in May, the first month that many courses were open after the mandatory closing in the spring.

NGF figures for the July rounds played have not yet been disclosed. But the anecdotal reports by the author of this story show that the availability of tee times in public courses in the Tristate area remains severely limited.

golf business, with the firm’s data showing that golf equipment sales rose 51% in June after a 22% increase in May." data-reactid="36">NPD Group data released in late July also indicated a strong summer for the golf business, with company data showing golf equipment sales increased 51% in June after a 22% increase in May.

golf industry was in a good place before the COVID-19 crisis, largely due to a surge of retirees entering the market, and in May we started to see this health returning. Today’s growth is driven by new players as well as pent-up demand from the closures of physical golf retail stores and golf courses.”" data-reactid="37">NPD’s sports industry consultant Matt Powell said, “The golf industry was in a good position before the COVID-19 crisis, largely due to a wave of retirees entering the market, and in May we started to see this health return. Growth today is driven by new players and pent-up demand resulting from the closure of physical golf stores and golf courses. “

golf manufacturers Callaway (ELY) and Acushnet Holdings (GOLF) — which owns Titleist and FootJoy — also indicated a big turnaround in the sport through the summer months." data-reactid="38">Earlier this month, results from golf makers Callaway (ELY) and Acushnet Holdings (GOLF) – which owns Titleist and FootJoy – also indicated a big breakthrough in the sport during the summer months.

Callaway CEO Chip Brewer said the company’s business “recovered faster than initially anticipated” during the second quarter.

Sales at Callaway were still down 34% during the second quarter, but the company noted that equipment sales increased 21% in June, the final month of the quarter. Brewer added that the company’s recovery in July sales was better than it was in June, citing both “the new holding and pent-up demand.”

golf have been incredibly resilient over the past [few] months.” The company said in its release that demand for golf balls had been particularly strong, indicating a pickup in rounds played." data-reactid="41">At Acushnet, sales fell 35% during the second quarter, but Acushnet CEO David Maher told analysts this month that “the game and business of golf has been incredibly resilient in the past. [few] months. “The company said in its statement that the demand for golf balls had been particularly strong, indicating an increase in rounds played.

And on the company’s earnings call, Maher added that, “We continue to be careful in our planning given the uncertainties surrounding COVID, while at the same time, our teams are preparing to capitalize on the high levels of participation and consumer demand we’ve seen in the past two or three months. “

Shares of Callaway (+ 4.1%) and Acushnet (+ 0.8%) rose on Wednesday after Dick’s results.

@MylesUdland“data-reactid =” 48 “>Of Myles Abroad, journalist and co-host of The final round. Follow him up @MylesUdland

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