Callaway Golf Reports 6.5% Increase In Net Sales, 140% Increase In Earnings Per Share

CARLSBAD, CA — Carlsbad-based Callaway Golf Co. reported second quarter net income Wednesday of $34.1 million, or 36 cents per diluted share, compared to $12.8 million, or 15 cents per diluted share, in the same period last year.

The company credited strong sales growth, up to almost $245.6 million, along with slightly reduced expenses.

"Despite softer than expected market conditions, we grew our net sales by 6.5 percent in the second quarter, which was led by increased sales in all product categories and in every major region," said CEO Chip Brewer.
The company also gained more than $23 million in proceeds from the sale of a small portion of its investment in Topgolf, a chain of golf entertainment venues.

"Overall, I believe we are performing well in the current environment as evidenced in part by our continued increase in U.S. hard goods dollar market share for the first half of this year," Brewer said. "I also believe that we are on track to create long-term shareholder value through our improved core business as well as future growth from areas tangential to the golf equipment business such as our recently formed joint venture in Japan."

For the first two quarters combined, Callaway's net income was $72.5 million, or 76 cents per diluted share, compared to $48.6 million, or 54 cents per diluted share, in the opening six months last year.

According to Brewer, the United Kingdom's decision to leave the European Union could bring some future risk to the market, but he said the business was strong overall.

— City News Service

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