Carlsbad-based Callaway Golf Co. (ELY-NYSE) on Wednesday 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 country.
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 for retailers, could mean second quarter sales will be flat or even down about 5 percent.
– City News Service
