Consumer Discretionary
Many of the catalysts for the recent golf boom have begun to reverse. Meanwhile, the drivers of the long-term decline in participation remain intact. As golf-related brands seek to continue growing revenues in the face of declining industrywide demand, competition is likely to intensify. GOLF’s large-but-eroding market share position and lack of off-course diversification leaves the company particularly exposed. OWS forecasts EPS falling to $1.78 in 2023 (-34% y/y), significantly less than consensus of $2.78 (+2% y/y). TP $28 (40% downside).
Edition: 154
- 17 February, 2023