Callaway Golf Co. reported that it expects its sales
and earnings for the second quarter of '98, ending June 30,
to be below current analyst estimates. Callaway said that
low sales in Asia will have a negative impact on its quarter
results and that sales of Odyssey putters by the company's
wholly-owned subsidiary, Odyssey Golf, are also expected to
be below target for '98's second quarter (Callaway).
BIG BERTHA: Callaway also acknowledged reports that the
USGA is evaluating steps that might prohibit or restrict the
use of high-tech metal woods, such as the company's Big
Bertha. Callaway said it is possible that such reports are
having or may have a negative effect on the company
(Callaway). CNN's Casey Wian examined the USGA's possible
ban of high-tech metal woods: "The USGA says it wants to
protect the integrity of the game and is considering rules
to require club manufacturers to tone down their
performance. Callaway says the USGA would only be hurting
the game and itself." Callaway CEO Ely Callaway said, "In
my opinion, that body, whoever tried to do that, would
become irrelevant." He said that golfers wouldn't want the
new equipment "taken away from them for no good reason."
Wian: "Callaway and other manufacturers are promising to sue
if the USGA makes good on its threat." Wian added that the
news "comes on the heels of a rough period for Callaway,"
whose stock has lost more than 35% of its value since late
February. Wian said that Callaway "is so concerned about
sales," it "is considering doing something it's never done
before," cutting prices on its Big Bertha line (CNN, 5/13).
GOLF NOTES: FootJoy has filed suit against Etonic in
U.S. District Court for false and misleading advertising.
FootJoy is targeting Etonic's ads which tout Etonic as the
market leader in spikeless golf shoes (FootJoy). In
GOLFWEEK, Dale Gardner reports that the dispute between
Etonic and FootJoy "hinges in part on a definition of
spikeless shoes." Etonic doesn't count FootJoy styles it
describes as "retrofitted" with alternative cleats
(GOLFWEEK, 5/9)....A month after it announced that it would
distribute golf equipment in Costco stores, Taylor Made has
decided it will not do business with the chain. Taylor Made
cited "consumer confusion" in regards to Costco's previous
grey market sales and "ongoing resentment" from its golf-
exclusive retail partners for the change (GOLFWEEK, 5/9).
