Golf Clubs - Callaway - Golf manufacturer reports strong Q1 sales thanks to rapid growth in asian markets

Callaway Golf have posted record Q1 net sales but is expecting to deliver at the lower end of its original forecast for 2008 due to vast uncertainty regarding the world economy. International markets which account for up to 50% of the manufacturer’s revenue are said to be the main reasons for its outstanding performance in a difficult environment.

Callaway recorded a net income of $39.7m compared to $32.8m (Q1, 2007) with net sales in the region of $366.5million – a 10% increase to the same period a year ago. The company reported increased sales in the following categories of golf clubs – Woods, up 13%. Putters, up 19%. Callaway reported a strong rise in sales of golf accessories, up some 24% and finally sales of golf balls had increased by 9%. Only Irons reported a decline sales compared to 2007 – down 4%.

Strong demand for Callaway’s new fairway woods and hybrids helped to boost its sales and offset poorer than expected sales of its Callaway Fusion drivers – FT-5 and FTi. A 9% in putter sales was attributed to its Odyssey range, driven by strong sales of the Black Series, Divine Line and sell-in of new products.

Callaway’s largest gain year-to-year has continued with its extensive range of golf accessories, most notably its Top-Flite complete package sets, junior golf sets and headwear. Increased sales of its golf balls were mainly put down to the launch of the HX Hot Bite and Tour ix products with Top-Flite lines in addition.

Sales of Callaway irons had fallen, due to lower than expected second-year sales of X2-20 and X-Forged irons – offset slightly by increased sales of its new FT and Big Bertha line of irons, in addition to X-Forged wedges.

Callaway has reported increased sales in all five major regions of the world: US, up less than 1%, Europe +18%, Japan +41%, Asia +16% and other countries – up 6%.

Sales of Callaway’s Legacy driver which was specifically designed for the Asian market, had sold particularly well in Japan – bolstering Q1, global sales of the golf equipment manufacturer. 

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