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Callaway club sales fall 8.9% as tariff refunds lift profit
Callaway Golf's third-quarter sales fell 5.6% to $436.9 million, with clubs down 8.9%. Refunded tariffs helped turn last year's loss into a $48.1 million profit, and the company raised its full-year forecast.
Callaway Golf made a profit from continuing operations of $48.1 million in the third quarter, against a loss of $4.1 million a year earlier, helped by $33.5 million of refunded tariffs that had been imposed under the International Emergency Economic Powers Act. Sales in the three months to September fell 5.6% to $436.9 million, the company reported on Thursday.
Club sales fell furthest, by 8.9% to $213.3 million. Golf balls were down 4.5% to $68.2 million and gear and accessories 7.3% to $55.9 million, while apparel rose 2.8% to $99.5 million. Acushnet, which published its figures a day earlier, reported Titleist club sales down 2.0% and ball sales up 3.3% over the same months.
Chief executive Chip Brewer told analysts the fall in club sales was planned: Callaway chose to launch less product in the second half of the year and changed the timing of its iron launches. Finance chief Brian Lynch added that the quarter was compared with a strong one in 2025, when US sell-through rose about 10%.
Callaway puts its share of the US club and ball market so far this year at just over 22%. In Japan its share of putter sales reached 40% after the Odyssey TRTL putters went on sale in early August.
Sales fell 17.1% in Europe to $37.4 million and 11.5% in Asia to $80.0 million. In the United States, which accounts for two-thirds of the business, they fell 3.0% to $292.8 million.
Callaway raised its full-year forecast for sales to $2.065–2.078 billion, from $2.045–2.070 billion, and for adjusted EBITDA to $272–280 million, from $246–260 million. It expects fourth-quarter sales of $328–341 million, against $368 million a year earlier. Lynch expects gross tariff costs of about $43 million this year, up from $34 million in 2025.
The company repaid more than $1.4 billion of debt in the first half and ended September with $434 million in cash and $76 million of debt. It had also bought back about 9 million of its own shares, for $135 million.
Brewer said part of next year’s range would use 3D-printing technology that Callaway plans to announce early in 2027. A $15 million plant in Fort Worth, Texas, is due to start making custom titanium parts in 2028.
Sources
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