Callaway Golf reported Q2 sales of $231 million and earnings of nearly $13 million compared to sales of $232 million and earnings of $3.4 million the same periods in 2014.
For the six months, the equipment company recorded sales of $515 million with earnings of $49 million compared to sales of $584 million and earnings of $59 million the second quarter of last year.
Callaway estimated its overall sales for this year at between $830 and $840 million, meaning it expects a substantial slowdown in sales in the third and fourth quarters. The company said it expects earnings the second half of this year to be three cents per share. It’s doubtful that estimate is based on sales as much as probable internal cost-saving initiatives from now until year’s end.
The first half numbers compared to the estimated second half numbers are further evidence that Callaway’s business, as well as that of most of its major competitors, is evolving into a six-month business versus a 12-month business. That is, the majority sales and earnings occur in the first half of the year; the second half is just hanging on as best they can.
Callaway’s core metal woods business dropped seven percent in Q2 versus the same period last year to $49.4 million. For the six months, sales of metal woods declined 23 percent versus the same period last year to $139 million.