NewsWire: 2/9/21
- The pandemic has been great for golf facilities and equipment sellers, which have seen a flood of new players and soaring sales. The number of first-time players is even higher now than it was during Tiger Woods’ heyday in 2000. (The Wall Street Journal)
- NH: Outdoor sports have thrived during the pandemic. They are socially distant, get people moving, and offer a break from the monotony of our Covid-19 lives. (See "America Goes Fishing.")
- Golf has especially benefited from this surge in outdoor activities. Since May, monthly rounds of golf played have soared compared to 2019; last November was 56.6% higher than the previous year. A National Golf Foundation survey found that in 2020 only 8% of public golf courses reported being in financial trouble. That's way down from the 25% that said the same thing in 2016.
- The golf boom has translated into strong performance for many golf equipment companies. Acushnet Holdings (GOLF), which owns Titleist, is up 47% YoY. Callaway Golf (ELY), which is set to merge with Topgolf, is up 51% YoY. And Dick’s Sporting Goods (DKS), which owns the retailer Golf Galaxy, is up 68% YoY.
- Will golf continue to be popular as we transition, sooner or later, into the post-pandemic era? IMO, the biggest hurdle facing prospective golfers is the the expense of equipment and climbing up the initial learning curve. All that is now a sunk cost for new players. So many of those who bought new clubs during the lockdowns will continue to play and upgrade their gear. As for new enthusiasts, I see the most potential in casual forms of the game like Topgolf. Millennials and Xers would much prefer to hit a few balls for an hour than trek out to the nearest country club. And now that so many more people are working remotely, they can stop by the driving range during their lunch break. (See "Millennial Golf Champions" and "The Outdoors Isn't Looking So Great.")
