Net income tripled to $9,517,000 from $3,060,000 in the seasonally small third quarter on revenues that were 8% higher at $262,654,000 vs. $243,604,000, including 3% higher core sales excluding TravisMathew. The bottom line comparison was helped by a lower tax rate and $3 million in acquisition expenses last year. Gross margin expanded 80 basis points to 43.9% benefitting from higher ASPs, favorable product mix, and higher-margin TravisMathew sales, but offset slightly by higher product costs. SG&A expenses leveraged 80 b.p. on the higher top line, despite the addition of TravisMathew operating costs.
Most of Callaway’s new product launches occurred earlier in ... Log in to view full article.