Callaway Golf Company estimates net sales for the first quarter ended March 31 of approximately $300 million with corresponding earnings per diluted share ranging from 26 to 28 cents. Excluding integration charges of approximately 3 cents per diluted share associated with the consolidation of the Top-Flite and Callaway Golf operations, pro forma earnings per diluted share are estimated to range from 29 to 31 cents.
William C. Baker, Chairman and Chief Executive Officer of Callaway Golf, commented, “As we emphasized earlier this year, net sales generated in the first quarter of fiscal 2005 were expected to be less than 2004 for two primary reasons. First, Callaway Golf is purposely staggering its new product launches more evenly this year. Second, the Company has carefully managed the amount of inventory shipped into the marketplace during the first quarter. These actions were taken to assure that every product launch was fully supported and to avoid the build-up of inventory at retail that was experienced last year. Both initiatives should promote sell-through of new and existing product.”
Mr. Baker continued, “We are pleased with the initial reception of our new products at retail and the early sell-through to consumers thus far. Retail inventories are in-line with our expectations and we are seeing gains in market share across our product portfolio. These gains could be enhanced by additional products scheduled to start shipping over the next two quarters, including our new X-Tour irons currently being used so successfully by Phil Mickelson. We are appropriately positioned in the marketplace with new products and inventory and believe that our commitment to innovative products and timely introductions will build sustainable, long-term value for our shareholders.”
