Global Edition

Callaway Golf Company Announces Second Quarter 2015 Financial Results

5.09pm 30th July 2015 - Corporate

 Chip Brewer, President and Chief Executive Officer of Callaway Golf Company
Chip Brewer, President and Chief Executive Officer of Callaway Golf Company

Callaway Golf Company (NYSE:ELY) has announced its second quarter financial results and revised its full year financial outlook. For the second quarter, despite headwinds from unfavourable changes in foreign currency exchange rates and softer than anticipated international market conditions (particularly in Asia), the Company achieved second quarter net sales essentially flat with 2014 but growing over 6% on a constant currency basis.

Due to significantly improved gross margins, the Company also increased second quarter 2015 operating income by 72% compared to the same period in 2014 and increased earnings per share by $0.11 to $0.15. As a result of the more challenging international market conditions and the higher than anticipated profitability, the Company revised its full year net sales estimates to $830 – $840 million (as compared to its prior estimate of $840 – $860 million) and increased its earnings outlook to $0.01 – $0.06 earnings per share (as compared to its prior estimate of a loss of ($0.03) to earnings of $0.04 per share).

“Overall, we are pleased with our performance in the second quarter and the progress we have made turning our business around,” commented Chip Brewer, President and Chief Executive Officer of Callaway Golf Company. “Foreign currency exchange rates and softer than expected market conditions in Asia have proved challenging this year; however, our brand momentum and market shares have continued to increase, we have made substantial progress improving our profitability, and our product pipeline remains robust. Looking forward, despite a continued rebalancing of retail inventory in Asia, we are encouraged by the overall fundamentals of the golf industry with less overall promotional activity, more reasonable production and inventory levels, and a general stabilization of participation in golf.”

Callaway Golf Company www.callawaygolf.com

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