While economists debate how aggressive the Federal Reserve will raise interest rates in the coming months, the impact of inflation in golf has caught the attention of the Philadelphia Federal Reserve president…

“Inflation is widespread and showing up in a wide array of items that are part of the consumer price index ‘basket’ representing Americans’ expenses, and some that aren’t. One of my contacts, for instance, mentioned whopping membership fee increases at his golf club, suggesting this summer may be a good time to play at your local muni instead.” – Patrick Harker, Philadelphia Federal Reserve president and former dean of the Wharton School of the University of Pennsylvania.

Stock Performance
With current stock market gyrations, I thought you might find of interest how two of golf’s largest publicly traded companies have faired pre-COVID versus today.

ELY (Callaway Golf):
Before pandemic: $17.01
Now: $20.83
Stock price appreciation: 22%

GOLF (Titleist):
Before pandemic: $23.38
Now: $41.63
Stock price appreciation: 78%

Sales Trends
According to Golf Datatech’s latest survey, U.S. golf equipment dollar sales continue to hold up well versus a robust 2021…

May 2022 versus May 2021 – down 1.4% in dollars
Year to date 2022 versus 2021 – down 2.5% in dollars

What is still open for debate is how much unit (versus dollar) sales have declined.

It’s probably safe to estimate with inflation running hot and supply chain woes still in-place, unit sales are down 10%-15%.