The Chip Brewer regime is making impressive progress in its second year at Callaway Golf Company. Callaway reported 2013 sales at $843 million vs. $834 million in 2012 and an operating loss of $11 million compared to $116 million in 2012 when Brewer and his management team were trying to o clean up the mess left by previous company president George Fellows.
Truth be told, Callaway is still cleaning up that mess but the 2013 numbers show it’s doing a good job – perhaps better than many industry observers expected.
The company even managed to increase sales in the always-tough fourth quarter – $127 million vs $120 million in 2012.
“We have made great progress to date in our turnaround,” said Brewer, who came to Callaway nearly two years ago from Adams Golf. “In addition to refocusing our business on golf equipment and more performance-oriented products, leveraging our strengths in research and development, and changing our approach to sales and marketing, we have also retired all of our preferred stock, increased our presence on tour, and completed the transition of our golf ball and golf club manufacturing platforms.
“The progress we made continued through the fourth quarter with improvements in sales, gross margins, and operating expenses. We believe that this continued progress and the initial positive trade reception to our 2014 product line position us for a good start to the new golf season and a return to creating shareholder value in 2014.”