Turnover dropped by 4 percent to $50.1 million in Europe and by 2 percent to $181.3 million in the USA at Callaway Golf in the 1st quarter, but these declines were offset by stronger sales in Asia and the rest of the world. While sales in Japan increased by 5 percent to $26.1 million, in the rest of Asia they rose by 16 percent to $17.0 million. Everywhere else Callaway’s sales grew by 21 percent to $28.0 million.
While total revenues grew by only 1 percent to $302.4 million, the company’s net income jumped by almost 25 percent to $22,861,000. The gross margin slid by 70 basis points to 43.5 percent, but cost cutting initiatives helped to improve operating margins to 12 percent from 10 percent a year ago.
Turnover fell by 20 percent for irons, by 22 percent for putters and by 6 percent for golf balls. It rose by 48 percent for woods and by 7 percent for accessories and other products.
Meanwhile Fortune Brands’ golf segment, which includes the Titleist, Foot Joy, Cobra Golf and Pinnacle brands, reported an increase of 3 percent in operating income to $58.4 million on a sales rise of 8.7 percent to $372.5 million.
