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Quarterly Sales Down for Callaway Golf

Harry Longshanks

Harry Longshanks

ILikeBigPutts&ICannotLie
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http://www.thegolfchannel.com/tour-insider/callaway-golf-quarterly-sales-29228/

This bums me out. First Acushnet, now Callaway. 185 more people without jobs.
(I think JB posted some information about this earlier this week.)

Callaway Golf Quarterly Sales Down
By ADAM BARR

Callaway Golf's worldwide net sales for the first quarter of 2009 were down more than 25 percent, fueling fears that the recent economic gloom has cast its shadow over even the strongest companies in the golf business.

Global net sales for the quarter ending March 31 were $272 million, down from $366 million for the same period in 2008. U.S. net sales were $141 million for the most recent quarter, compared with $184 million in '08, and gross profit for the first quarter of 2009 was down to $116 million from $176 million in the first quarter of '08.

In addition to a lackluster retail climate, foreign currency fluctuations depressed net sales by about $22 million, Callaway said.

The company had to lay off about 10 percent of its global labor force – 185 people – on April 15. Both manufacturing and administrative positions were included in the layoffs. This comes on the heels of news that the Acushnet Co. plans to lay off 169 workers due to a sharp drop in worldwide sales of its Titleist brand golf balls.

"We are clearly disappointed in the manner in which the year has started," said George Fellows, Callaway's president and CEO. "However, we firmly believe the golf industry will recover as the economy recovers. Rather than approach the balance of the year from a purely defensive posture, Callaway will not only continue to aggressively manage costs and focus on liquidity, but we will also concentrate on positioning the company to emerge from this trying period in a stronger position when the industry does recover."

Callaway, known for maintaining a strong cash and inventory position throughout its history, has in recent years also begun a number of cost control measures. Its operating expenses in the most recent quarter dropped to $103 million from $111 million in the first quarter of 2008, largely due to a decrease in employee compensation costs.
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I knew this was coming, or had heard rumors anyway...but it still sucks.
 
I have been mentioning this one for a while. Callaway is struggling more than any of the others.
 
With the price of new clubs & the general fear of the economy a lot of people have this is really no surprise. A lot of folks who normally would be purchasing clubs are using that cash for greens fees or just general household bills.

I don't buy new clubs because they are simply priced too high & they drop off in value so quickly that you can score used clubs that are in like new condition for less than 1/3rd of the cost.
 
maybe they'll drop the price of the X-22's? yea right~! a man can dream, right?
 
I wonder if Phil is going to get laid-off. The way he has been playing lately, he should be.
 
Bakemono said:
I wonder if Phil is going to get laid-off. The way he has been playing lately, he should be.
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Sure seems to me that he's playing OK obviously he had a rough time yesterday but that happens. However at the same time I would think all of the club manufacturers may rethink the amount of monies paid out. I'm afraid that this is going to get much worse but it turns. The Golfsmith near me who had just moved to a larger facility has had (2) Grand Openings due to lack of interest. What really concerns me is that golf is heading towards... say what it is in Asia, a game for only the wealthy. Not trying to be a downer on a beautiful morning but it is what it is. Talking with a Course Superintendent at a very nice public course here yesterday, play is way off even with a reduced green fees.
 
LefTe said:
What really concerns me is that golf is heading towards... say what it is in Asia, a game for only the wealthy. Not trying to be a downer on a beautiful morning but it is what it is. Talking with a Course Superintendent at a very nice public course here yesterday, play is way off even with a reduced green fees.
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You could say that about a lot of things. The price of everything constantly goes up but the average income of most people has not kept pace.
When people are either out of work or are unsure if they are going to have a job in the near future, they arent going to spend money unless they have to.
Around here, the golf courses are still packed Thursday-Sunday.
 
I think Phil has been playing great. He has won this year and looks sharp. Most said on this forum he was done and look at how this year has already started.
 
JB said:
I think Phil has been playing great. He has won this year and looks sharp. Most said on this forum he was done and look at how this year has already started.
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comment about Quail Hollow:
Spoiler
He's making a charge today. Too bad it's probably "too little, too late" because yesterday's round was so poor.
 
I think Phil is more dangerous this year than he had been in quite a while.
 
I did my part! I bought X18Rs from Golf Galaxy last month.

I can see how any recreational based company is going to have a tough time, though.
 
JB said:
I think Phil has been playing great. He has won this year and looks sharp. Most said on this forum he was done and look at how this year has already started.
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Harry Longshanks said:
comment about Quail Hollow:
Spoiler
He's making a charge today. Too bad it's probably "too little, too late" because yesterday's round was so poor.
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ActionJackson8 said:
I think Phil is more dangerous this year than he had been in quite a while.
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I still think Phil is washed up. He may well win the lesser tournaments here or there, but I dont see him winning a major. I dont think he can put together 4 good rounds in a row at a major.
 
Lesser tournys? He won Doral with a field that rivals any major out there.
 
True, but Doral isnt a major. It didnt have the atmosphere and the pressure of a major. Theres a lot of tourneys out there that are just as tough as a major, but its still not the same as winning a major, IMHO.
 
He has more wins this year and a top 10 in the first major. I dont think he can be called washed up.
 
Bakemono said:
I still think Phil is washed up. He may well win the lesser tournaments here or there, but I dont see him winning a major. I dont think he can put together 4 good rounds in a row at a major.
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Phil washed up??? egads, not a chance
 
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