Callaway Golf Company reported today its third quarter sales dropped to $148 million compared to $173 million the same period a year ago. The company reported an operating loss of $83 million for the quarter compared to $44 million in Q3 of 2011.
For the nine-months, the company reported sales of $714 million versus $733 million the same period a year ago, and an operating loss of $45 million compared to $31 million the same period in 2011.
None of those numbers are pretty, but Callaway President Chip Brewer, who has been on the job less than one year, said the results “were consistent with our expectations as we entered the quarter.”
“Our decline in sales and gross margins during the third quarter are the result of the sale of the Top-Flite and Ben Hogan brands earlier this year as well as the sales promotions and other actions we took to stimulate sell-through on our 2012 products and prepare our business for a successful 2013,” Brewer said. “On the other hand, our results also include a decrease in operating expenses as a result of our cost reduction initiatives. Overall, our results, while not acceptable on an absolute basis, reflect many actions that should be beneficial in the long-term.”
Brewer added that he is “encouraged by the progress we have made in the eight months,” he has been Callaway since coming from the same position at Adams Golf.
“We are beginning to see some of the benefits of the actions we have taken in the form of reduced operating expenses and an increase in market share for the last five consecutive months in the U.S., albeit at modest levels,” Brewer said. “I am also very pleased with the changes we have made in our 2013 product line and marketing strategy, both of which will be more consumer-oriented and relevant.”