Yahoo Finance Live’s Brian Sozzi discusses Tiger Woods’ return to the Masters' Tournament and the slowdown in golf equipment sales.

Video Transcript

JULIE HYMAN: But here's a little silver lining for folks, at least those who are golf fans, like Brian Sozzi. He is looking ahead to the Masters and looking forward to Tiger Woods's return to the greens there. You're also looking at the implications for the markets, as you always do, and the companies that make golf equipment. What can you tell us?

BRIAN SOZZI: Well, I do want to say, Julie, real quick, you asked how many drivers I'm buying this season. No more drivers, no more clothes, because these things aren't cheap. A good driver nowadays is $550. Last season was about $450. I do not have a money tree in my backyard, so no more clubs for me this season.

To that end, I'm looking at golf clubs sales through from July 2021 through February of this year. That is the latest data from NPD Group. There I am, holding a golf club, one of my $500 plus clubs. Golf club sales are down 12% during that span. Golf glove sales, which you need a glove if you're playing golf, those are down 6%. Golf ball sales unchanged.

By and large, what this reflects is, it's been-- it was so sort of an unleash of demand during the pandemic, as people looked for outside activities. So, in many respects, the golf equipment industry is going up strong year ago comparison. So it's logical you do, in fact, see growth slow. Good comment here, though, from NPD Group's Dirk Sorenson, who follows this industry very closely, saying, quote, "I think some of this decline in club sales reflects less in new returning players engage in purchasing total golf equipment packages." So, very interesting stuff there.

Now, the stock prices, Julie, you have certainly been tracking this data. You have Callaway Golf shares year to date down about 19%. And you have Acushnet, which that is essentially Titleist-- they make Titleist golf balls, bags, clubs, et cetera. Those shares are down 24% year to date. But by and large, here is my take for everyone, and as always, it is pretty simple. That is big golf season on tap. It is going to be a big golf season on tap.

And there I was this past weekend for my birthday. My loving family took me to TopGolf, which is owned now by Callaway Golf. I believe they purchased this last year for $2 billion. I was hitting my $550 driver there at the range. This place was packed. It was 10 o'clock at night. I got my light beer, packed out. All the stalls were packed. All the bar area was packed. It's going to be a big golf season. I don't think the market understands that. Take a look at some of these stocks.

JULIE HYMAN: How's that driver treating you when you were doing that--

BRIAN SOZZI: I hit that ball--

JULIE HYMAN: --when you were hitting the range?

BRIAN SOZZI: I hit that ball 400 yards.

JULIE HYMAN: All right, I have nothing to compare that to, but that sounds good? Yeah?

BRIAN SOZZI: Tiger hits a 300. I hit a 400.

JULIE HYMAN: Well, there you go. Maybe you should be at the Masters, Sozz.