Callaway Golf Company (NYSE:ELY) has provided guidance for the second quarter of 2010, announcing that estimated net sales would be in the range of $295 – $305 million and fully diluted earnings per share would be in the range of $0.10 – $0.15, including charges of approximately $0.01 per share related to the Company’s global operations strategy.
For the second quarter of 2009, the Company reported net sales of $302 million and earnings per diluted share of $0.10, including approximately $0.02 per share for charges related to the Company’s global operations strategy.
“As we discussed throughout the year, 2010 will be the first step for the golf industry and the Company toward a full recovery from the recent global economic crisis,” commented George Fellows, President and Chief Executive Officer.
“The pace of the recovery is affected by the stabilization of the worldwide economies and the recovery of consumer discretionary spending on durable products. Based upon current trends, however, it appears that the recovery will be slower than we had expected. The increased economic and political instability in Asia and Europe, the tentative nature of consumer spending so far this year in the United States, and unfavorable weather conditions in many of the Company’s key markets this year, are all factors slowing the pace of the recovery.”
“While our full year results will show less improvement than we initially forecasted, we remain confident that we will return the Company to profitability in 2010 and remain confident in our longer-term prospects as well,” continued Mr. Fellows.
“Our brand continues to be strong worldwide. Our global operations strategy continues to deliver significant savings and increased flexibility in our supply chain, allowing us to adjust to changing market conditions very efficiently. Our apparel and accessories businesses continue to grow, and our international market expansion is ahead of schedule and will benefit from the inclusion of golf in the Olympics. Inventories at retail as well as our own inventories are reasonable and our liquidity and balance sheet are sound. These factors will be even more important as economic conditions improve and the recovery continues.”
The Company intends to release actual second quarter financial results on July 28, 2010. A conference call and webcast will also take place at that time. During the conference call, the Company will provide its revised outlook for the year as well as information on the actions the Company is implementing in light of the slower than expected economic recovery.
Callaway Golf Company www.callawaygolf.com