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Callaway Golf Reports $55M First-Quarter Net Income

The company said a late start on the golfing season this year, along with high inventory levels for retailers, could mean second quarter sales will be flat or even down about 5 percent.

Patch file photo.
Patch file photo.

Carlsbad-based Callaway Golf Co. today reported first-quarter net income of $55 million, or 61 cents per diluted share, compared to income of $42 million, or 47 cents per diluted share,  in the first three months of last year.

Callaway credits a 22 percent increase in net sales, which came in at $352 million. The improvement enabled the company to overcome an extra $13 million in expenses for marketing new products.

"These results reflect our continued brand momentum and the success of the first stage of our multi-year turnaround plan," said Chip Brewer, Callaway's president and CEO. "In particular, our renewed focus on more consumer-oriented products has resulted in double digit sales increases in our woods, irons and golf ball product categories, resulting in a 22 percent increase in net sales for the quarter and market share gains in each of our key markets around the world."

He said the company's turnaround plan, in effect for a couple of years, is having a positive effect, despite bad winter weather in much of the United States.

The company has refocused on golf equipment and performance-enhancing products, changed its approach to sales and marketing, and increased its presence on the PGA tour, according to Brewer.

The company said a late start on the golfing season this year, along with high inventory levels for retailers, could mean second quarter sales will be flat or even down about 5 percent.

—City News Service

Steven Oathkeeper April 23, 2014 at 09:01 PM
belch
Steven Oathkeeper April 23, 2014 at 09:02 PM
whoopps
glenn bernard April 24, 2014 at 12:27 PM
"Golf in Carlsbad." As everybody knows, (humor) most golfers earn less than the minimum wage, and can barely afford their hobby. Thus we should all be thankful that Carlsbad City Hall recently decided to take business away from the "greedy" families who privately operate the 3 pre-existing golf courses….and created a $100 million Taxpayer obligation to build an "affordable" golf course for America's impoverished golfers. No golf course is worth a darn unless it's owned by Government! The Callaway article reminds us of the high cost of golf clubs, so let's urger Carlsbad City Hall to either purchase or "annex" an empty building so that their tools of the trade (golf clubs) could also be manufactured and subsidized at Taxpayer expense. In case you forget, the following names are on display at Government Golf: Patchett, Hall, Lewis, Kulcin, Packard, et al.

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