Callaway Golf Company (NYSE:ELY) estimates net sales for the first quarter ended March 31, 2008 of approximately $366 million, an increase of approximately 10% compared to the first quarter of 2007, with a corresponding estimated increase of approximately 25% in earnings per diluted share that is estimated to range from $0.59 to $0.61 (on 64.8 million shares).
These results also include after-tax charges of approximately $0.01 per share related to gross margin improvement initiatives announced in November 2006.
For the first quarter of 2007, the Company reported net sales of $335 million and fully diluted earnings per share of $0.48 (on 68.3 million shares). Those results included after-tax charges of approximately $0.01 per share related to the gross margin improvement initiatives.
“We are very pleased with our preliminary first quarter results,” commented George Fellows, president and CEO of Callaway Golf. “We continue to build upon the momentum we gained in 2007, including additional improvements in our supply chain and product development processes. The strong sell-in to the retail channel during the first quarter reflects the strength of our brands and the quality of our 2008 product line.”
“While sell-in of our new products has been encouraging thus far,” continued Mr. Fellows, “the second quarter will be a better indicator of how successful our year will be as it is driven by consumer purchases of our products and resulting retail reorders. Additionally, we continue to monitor macroeconomic and competitive conditions globally.
“Contingency plans we have developed this year, along with business process improvements implemented over the past two years, provide us with greater flexibility to adjust to unforeseen circumstances that might impact our business. At this point, we remain optimistic that our full year financial results for 2008 will be significantly higher than in 2007 and will be within our original guidance.”
The Company will release actual first quarter financial results on 1st May. A conference call and webcast will also take place at that time.
Callaway Golf Company www.callawaygolf.com
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