Callaway Golf Reports Q2 Net Sales Of $302M, Down 17% From '08
Callaway Golf for the quarter ended June 30 reported net sales of $302M, down 17% from $366M for Q2 of '08. Callaway's gross profit for the quarter of $110M, or 36% of net sales, was down from $171M, or 47% of net sales last year. The company also reported operating expenses of $100M in Q2, down from $111M in '08. For the first six months of '09, Callaway reported net sales of $574M, down 22% from last year's $732M, which was a record high for the company (Callaway). Callaway also reported net income of $6.5M, or $0.10 per share, down from $37.1M and $0.58 per share last year. In San Diego, Mike Freeman notes Q2 is "typically strong" for Callaway, and the company said that it has been "working to control costs in the wake of slower sales of golf equipment during the recession." Callaway claims that it "would have earned" $0.12 per share in the latest period if "charges for cost-cutting measures" were excluded (SAN DIEGO UNION-TRIBUNE, 7/30). Callaway yesterday did report that it has been "able to increase its market share during the second quarter," though golf and "other leisure activities that rely on discretionary spending have suffered during the recession" (AP, 7/29). At presstime, shares of Callaway were trading at $6.58, up 15.9% from yesterday's close of $5.68 (THE DAILY).
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