Callaway Golf returns to profitability after six years of losses
03/02/2015
Callaway reported full year sales growth of 5% to $135 million for 2014, driven by growth in most major product categories and growth in all geographic segments.
Additionally, income from operations improved significantly to $31 million compared to a loss of $11 million in 2013.
CEO Chip Brewer said: "Notwithstanding challenging market conditions for the golf industry as a whole, we were able to grow sales, increase our market share and return to profitability for the first time since 2008 - a significant milestone for us in our turnaround. Our return to profitability has clearly benefitted from the many actions we have taken during the last few years to improve our operating efficiencies. Also, our continued emphasis on cost management has allowed us to increase our investments in tour and marketing and still hold our operating expenses essentially flat with 2013. All in all, we are pleased with how our turnaround has progressed thus far.
"Given the strength of our product line for 2015, which was well received at the recent PGA show in Orlando, and anticipated additional improvements in our operations, we expect for 2015 on a constant currency basis not only sales growth and market share gains, but also further improvements in gross margins and profitability. Golf is a momentum business and fortunately momentum is now on our side."
Share this story:
