Callaway Golf Company today reported second quarter 2012 sales of $281 versus $274 million the same period a year ago. Callaway reported Q2 earnings of $14 million in Q2 compared to $8 million the same quarter in 2011.
For the six months, Callaway reported sales of $566 million versus $559 the first half of 2011. Earning the first six months of this years were $35 million compared to $30 million the first half of 2011.
Those numbers are good. Given Callaway’s struggles the past few years, but the company’s pace of improvement, said President Chip Brewer, is slower than expected.
“And our market shares have not met our expectations, resulting in higher than expected retail inventory levels at this time of year,” said Brewer, who became Callaway boss this past March. “As a result, we have lowered our sales expectations for the second half of the year to allow us to work through any excess inventory at retail and prepare our business for improved results in 2013.”
For example, despite a strong marketing campaign (and solid reviews) for its new RAZR Fit driver, Callaway’s metal woods sales fell in Q2 to $58.5 million from $65.3 million the second quarter of 2011. For the six months, Callaway’s Q2 metal woods sales increased two percent versus Q2 of 2011 to $149.3 million. The increase likely can be attributed to strong sales of the RAZR Fit driver in Q1.
Callaway also saw a drop in iron and balls sales for the quarter and six months. Its putter sales, thanks to the popularity of its White Hot line, increased 63 percent in the quarter to $38.9 million and 20 percent in the six months to nearly $63 million.
Again, those are good numbers, but until Callaway’s regains its market share in the metal woods market, the numbers won’t be good enough.