Net income was $3,060,000 against a loss of $5,866,000 last year as sales jumped 30% to $243,604,000 from $187,850,000 in the seasonally small third quarter, a period in which ELY usually reports a loss. Gross margin expanded 110 basis points to 43.1% boosted by a favorable product mix including higher margin Epic woods and irons combined with overall higher ASPs. Operating expenses were up $15 million, which included $3 million in TravisMathew and OGIO acquisition related expenses, but leveraged 420 b.p. on the higher revenues.

All categories contributed to the top line gains, with clubs up 21% to $146.1 million driven ... Log in to view full article.