Royals To Debut Craft Beer Bar Mariners Renew Deal With Ford Senators: Take World Cup Out Of Russia ABC Supply To Sponsor IndyCar Race Mizuno Launches Campaign Battle At Bristol Ticket Info Released Bucks' Downtown Arena Plan Gains Steam Manfred Defends Mets Ownership, Payroll ESPN.com Debuts New Site Redesign Spieth Stars In New AT&T Campaign
SBD/June 4, 2014/FinancePrint All
While Callaway Golf "recently reported strong first-quarter results," President & CEO Chip Brewer "knows there is more convincing to do among current and potential investors," according to Ronald White of the L.A. TIMES. Brewer said Callaway is "clearly a historical brand." He added, "It's been a leader in the business, and yet, at this point, it is a turnaround story." White noted Callaway also is a "global brand, with 52% of its sales overseas, mostly in Japan and Europe." Brewer said that Callaway "turned to acquisitions for growth rather than the innovation that had driven the company's earliest years." Brewer: "These were not necessarily strategic mistakes, but they never bore fruit." He added the company "was vulnerable" when the global recession hit in '08. But in "spite of such challenges, Callaway seems to have improved its swing" in '14. The company "continues to take advantage" of its veteran PGA Tour players, including Phil Mickelson, but the brand also has "reached out to younger players to appeal to the important 18-to-34 age group," including Ryo Ishikawa (22), Patrick Reed (23) and 30-year-old Gary Woodland. Of nine analysts who "follow Callaway Golf, four rate it a strong buy and three consider it a buy." Two said to "hold the stock" (L.A. TIMES, 6/2).