netrashetty
Netra Shetty
Callaway Golf Company (NYSE: ELY) makes golf equipment. In 2008, Callway's net sales were divided between woods (24%), irons (27.6%), putters (9.1%), balls (20%), and other accessories (19.3%).[1] Sales in woods, a product that carries high for the company, decreased $37.6 million (12%) to $268.3 million from 2007 as a result of declines in both average selling prices and sales volume, as well as a decreased number of new driver models. [1] For the full fiscal year 2009, Callaway reported net sales of $951 million and a net income of -$15.3 million, decreases from 2008's $1.1 billion and $66.2 million, respectively. Callaway attributed the declines to the overall economic struggles during the year.[2] In Q4 2010, Callaway posted sales of $186 million, the same as the year before. Its net income, on the other hand, was -$32.26 million, down from -$15.55 million in the year before. For the full fiscal year, Callaway posted sales of $968 million, an increase of 2% compared to $951 million the year before. Its net income for the year came in at -$18.80million, down from -$15.26 million in the previous year. Callaway's numbers for the year was the result of the combination of the golf industry's slow recovery and the additional benefits from our gross margin initiatives, investments in emerging markets, and cost management initiatives.[3]
Contents
1 Business Overview
1.1 Business Segments
1.1.1 Golf Clubs Segment (80% of sales, 95.1% of operating income)[11]
1.1.2 Golf Balls (20% of sales, 4.9% of operating income [11])
1.2 Financial Analysis
2 Key Trends and Forces
2.1 Declining Golf Industry Challenges Callaway's Sales
2.2 Callaway's brand equity depends on the performance of its endorsed players
2.3 Due to the general trend of short product life cycles, Callaway's new releases must drive its revenue
2.4 Seasonal fluctuations impact golf rounds played and Callaway’s sales
3 Competition
4 Notes
Callaway faces pressures from a shrinking market. As the Baby Boomer generation that fueled the sport's popularity ages and a younger, less active generation finds its entertainment elsewhere, fewer people are playing fewer rounds of golf.[4] The number of golfers in the U.S. has declined steadily since 2000, reaching 26 million in 2008, down from 30 million in 2000.[4] Furthermore, the amount of golfers that play at least 25 times a year has dropped about 33% since 2000.[4] However, Callaway's sales have maintained strong as of 2007, increasing 38% since 2003.[5] In addition, experts predict that the golf club market will see a growth rate of over 25% annually in China and India as golf continues to expand worldwide, a trend that benefits Callaway.[6]
Callaway depends on continual new product launches for its success, as customers come back to buy the latest technology. In 2007, the company's product launches had mixed results - sales of a new line of Top Flight balls called the Xtreme flopped, but the popular release of the Big Bertha 460 driver spurred a 15% increase in driver sales.[7] In June 2009, Callaway Golf announced it had completed its $140 million private offering of series B preferred stock. [8]
Business Overview
Callaway manufactures clubs, including drivers, woods, irons, wedges, and putters, under their brands Callaway and Ben Hogan, while developing golf balls under the names Callaway, Ben Hogan, and Top Flite. In addition, the company produces putters through their Callaway and Odyssey lines, and retail apparel (hats to shoes) and accessories (bags, umbrellas, other forms of gear) primarily through its Callaway logo.[9] Callaway, Ben Hogan, Top Flite, and Odyssey are all well known to the golfing community because of endorsements by top professional golfers, like Phil Mickelson, Arnold Palmer, and Annika Sorenstam. The company retails goods worldwide, with international sales of 50.4%.[10]
Business Segments
The company's business segments are organized into the Golf Clubs segment and the Golf Balls segment.
Golf Clubs Segment (80% of sales, 95.1% of operating income)[11]
Irons (27.6% of sales): The company sells irons and wedges under the Callaway Golf, Top-Flite, and Ben Hogan names. Callaway earned $309.6 million in revenue from iron sales in 2007, which represented a 8% increase from a year earlier.[7] The company attributes several new successful product launches, including the X-20 series irons, for the rise in sales.
Drivers and Fairway Woods (24% of sales): Callaway designs and sells drivers and fairway woods under the Callaway Golf, Top-Flite, and Ben Hogan brand names. The company earned $268.3 million in revenue from the sales of drivers and fairway woods, or 24% of its total 2008 revenue.[12] Woods sales decreased $37.6 million (12%) to $268.3 million from 2007 as a result of declines in both average selling prices and sales volume, as well as a decreased number of new driver models. [1] As a result of said decline, Callaway announced that it would get rid of its FT IQ driver line in September 2009, after only one year on the market.[13]
Accessories and Other (17% of Revenue): This segment includes Callaway's sales of golf-related accessories like golf bags, footwear, gloves and umbrellas as well as royalties earned through licensing of the company's logo on apparel, watches, and travel gear. Together, accessories sales reached $186.9 million in 2007, or 17% of the company's revenue.[7] This represents a 17% increase from 2006 which was mainly due to higher sales of Callaway footwear.[7]
Golf Balls (20% of sales, 4.9% of operating income [11])
Callaway earns 20% of its revenue from sales of golf balls under the Callaway Golf and Top-Flite brand names.[1] Golf ball sales increased 5% in 2008 to $223.1 million due to an increase of $17 million in Callaway Golf ball sales offset by a $6.2 million decrease in sales of Top-Flite balls. [1] Operating profit from golf balls increased from just $0.9 million in 2007 to $6.9 million in 2008. [11]
Putters (9.1% of Revenue)[1]:
Callaway also sells putters under the Odyssey, Callaway Golf, Top-Flite, and Ben Hogan brand names. Putter sales accounted for 9.1% of the company's revenue in 2008, reaching $101.7 million.[1] Sales of putters increased 7% during 2008 resulted from a decrease in sales volumes partially offset by an increase in selling price.[14]
Financial Analysis
Callaway reported $1.11 billion in revenue in 2008, a slight decrease from $1.12 billion in 2007.[15] [16][5] Callaway's net income totaled $66.1 million in 2008, a 28% increase from $54 million in 2007.[15] The company's growth in net income is attributed primarily to its increase in gross margin (5% increase) as well as increased sales worldwide. Furthermore, the company's SG&A and research and development expenses as a percentage of revenue remained constant during 2007, which added to Callaway's net income growth.[17] The company's golf clubs segment (including all types of clubs and the accessories category) continues to be the most crucial aspect of the company's financial success as it operated at a 16.7% operating margin in 2007, compared to 0.42% for golf balls.[18]
In the second quarter of 2009, the company reported net income fell 82% to $6.5 million, down from $37.1 million in the year ago period, disappointing analysts.[19] Net sales fell 17 percent to $302.2 million, hurt by weak consumer spending and currency fluctuations. [19]
Key Trends and Forces
Declining Golf Industry Challenges Callaway's Sales
The number of yearly golf rounds is an effective indicator for the annual sales of golf equipment. In 2006, 501 million golfers rounds of golf were played in the U.S., down from its peak of 518 million in 2000. The population (golfers who play at least eight rounds a year) in 2006 was 15 million, down from the record of 17 million in 2000.[4]
Number of Annual Rounds of Golf Played in the United States [20]
In 2006, for the first time in over half a century, the golf industry did not see any net increase of facilities from the previous year (119 new courses opened while 146 closed down). As a benchmark, 400 courses were introduced in 2000.[21] However, Callaway continues to grow as of 2007, with a 10.5% increase in sales during 2007, mainly due to a 21% increase in European sales as the company continues to seek expansion opportunities abroad.[16]
Economic downturns also reduce demand for ELY's products as many consumers forgo purchases on luxury items like new drivers. ELY has cited softening worldwide sales following the 2007 Credit Crunch and subprime lending crisis. For example, in Q3 2008, its sales dropped about 9.1% from a year earlier to $213.5 million[22] Additionally, the company reported a net loss of $7.4 million, because of its decline in sales and costs associated with previous acquisitions.[22]
One interesting factor that will help golf's popularity (along with Callaway's business) is the announcement that golf will make its return to the Olympic games in 2016, which will increase its exposure to the world and introduce it to a new generation of people.[23]
Callaway's brand equity depends on the performance of its endorsed players
The performances of the professional golfers sponsored by Callaway strongly relates to sales. When a pro golfer uses certain equipment to win a tournament, that company experiences tremendous exposure to the media and receives praise from its peers. Amateur golfers of all levels generally want to play with the same types of equipment (clubs, balls, gear) the successful professionals trust. Callaway equipment is represented well on major tours:
Callaway Endorsement Players [24]
PGA Tour European Tour Champions Tour LPGA Tour Legends
Phil Mickelson Thomas Bjorn Bruce Fleisher Annika Sorenstam Arnold Palmer
Ernie Els Michael Campbell Jim Colbert Morgan Pressel Gary Player
Nick Flanagan Nick Dougherty Eduardo Romero Julieta Granada Johnny Miller
Olin Browne Niclas Fasth Mark McNulty Leta Lindley David Leadbetter
Due to the general trend of short product life cycles, Callaway's new releases must drive its revenue
New Callaway products have an average life of two years, with most of its sales occurring in the first, and generate about 55% of the company's annual sales.[25] As a result, Callaway faces the challenge of having to release fresh products every year to accommodate its consumers. The company's struggles with inventing novel clubs can be seen by the decline in research and development expenses since 2004:
Callaway's Annual Research and Development Expenses [26]
Despite its downward trend of innovating profitable products, Callaway looks forward to a successful 2008 with the help of its strong brand equity and by introducing the following products to the market:
Popular Callaway Products [27]
Golf Digest 2008 "Hot List" Category Club Price
Drivers FT-5, FT-i, Hyper X $430, $500, $299
Fairway Woods FT, X $250, $200
Player's Irons X-20 Tour $800
Game-Improvement Irons X-20 $700
Super Game-Improvement Irons Big Bertha $800
Putters Odyssey Black Series 1, Odyssey White Hot Tour $270, $160
Balls Tour/iTour iX $45/dozen
Seasonal fluctuations impact golf rounds played and Callaway’s sales
Warm weather is the ideal condition for golf, and consequently Callaway generates approximately 65% of its revenue during the spring and summer. In addition, golf companies experience financial success when their players perform particularly well in the Majors (Masters in April, U.S. Open in June, British Open in July, PGA Championship in August)), which coincides with prime golf season in America. An abundant quantity of golfers hang their clubs during the cold months of fall and winter, resulting in a decrease of rounds played in the second half of the year. In the short term, Callaway is expected to get a slight boost from the three week extension of daylight savings time starting in 2008, as this should increase the number of rounds played in some North American markets.
Competition
Callaway encounters fierce competition in each of its departments, but has climbed its way to become one of the top retailers in four of the main golf equipment categories.[28]
Callaway Products by Market Share of Total Golf Equipment Industry [29]
Market Share Ranking
Callaway Woods 17.0% #2
Callaway Irons 24.2% #1
Callaway Brand Balls 10.9% #2
Odyssey Putters 36.0% #1
Callaway's competitors include:
Fortune Brands (FO): The Acushnet Company is Fortune Brand's golf division and runs the following companies: Titleist, Cobra Golf clubs, Pinnacle balls, FootJoy gear, and Scotty Cameron putters. Acushnet is the top U.S. selling golf product in balls (Titleist) and shoes (FootJoy). The company earned $1.4 billion in revenue in 2007, a 7% increase from a year earlier which the company attributes to increases in international sales and new product introductions.[30]
TaylorMade/adidas golf : Bought out by Adidas in 1997, TaylorMade manufactures golf clubs, balls, and accessories, while Adidas deals with apparel. Although it is ranked second in world club distribution, more PGA Tour professionals play with TaylorMade drivers than Callaway, Cleveland, Cobra, Nike, and Ping combined.[31][32]
Nike (NKE): Nike competes in all departments of the golfing market: clubs, balls, and gear. Always a leader in athletic innovations, Nike's golf equipment is used by Tiger Woods.
Cleveland Golf: SRI Sports Limited, a Japan-based sporting goods company that sells tennis and golf equipment through their Dunlop and Srixon licenses, acquired Cleveland Golf in December of 2007. Their golf brands are number one in club sells and number two in ball sells in Japan.[33] The company sells drivers through wedges and produces putters under their brand, Never Compromise.
Ping Golf: Ping has proven to be a competitor in all categories of golf clubs. Their new products won awards in Golf Digest's 2008 Hot List for game-improvement irons and putters.[34]
Fortune Brands, Adidas, and Nike are the three largest companies Callaway faces in the U.S.:
Company Revenue 2007 (Millions) Net Income (Millions) Gross Margin
Callaway $1,124.6 $54.6 44%
Fortune Brands (FO) $8,563[35] $762.6[35] 46.7%[35]
TaylorMade-AdidasGolf €804[36] €65 (operating profit)[36] 44.7%[36]
Nike (NKE) (2008 Data) $18,627[37] $1,883.4[37] 45%[37]
The following clubs are expected to compete with Callaway this year:
Callaway Products to be Launched in 2008 [38]
Golf Digest 2008 "Hot List" Category Club Price
Drivers Cleveland HiBore XLS $300
Fairway Woods Nike SQ Sumo2 $230
Player's Irons Cleveland CG Red $700
Player's Irons TaylorMade r7 TP $800
Game-Improvement Irons Ping G10 $700
Game-Improvement Irons TaylorMade r7 $700
Super Game-Improvement Irons Cleveland HiBore $700
Super Game-Improvement Irons Cobra S9 $800
Putters Nike IC 20-10 $140
Putters Ping I-Series $120
Balls Titleist Pro V1/Pro V1X
Contents
1 Business Overview
1.1 Business Segments
1.1.1 Golf Clubs Segment (80% of sales, 95.1% of operating income)[11]
1.1.2 Golf Balls (20% of sales, 4.9% of operating income [11])
1.2 Financial Analysis
2 Key Trends and Forces
2.1 Declining Golf Industry Challenges Callaway's Sales
2.2 Callaway's brand equity depends on the performance of its endorsed players
2.3 Due to the general trend of short product life cycles, Callaway's new releases must drive its revenue
2.4 Seasonal fluctuations impact golf rounds played and Callaway’s sales
3 Competition
4 Notes
Callaway faces pressures from a shrinking market. As the Baby Boomer generation that fueled the sport's popularity ages and a younger, less active generation finds its entertainment elsewhere, fewer people are playing fewer rounds of golf.[4] The number of golfers in the U.S. has declined steadily since 2000, reaching 26 million in 2008, down from 30 million in 2000.[4] Furthermore, the amount of golfers that play at least 25 times a year has dropped about 33% since 2000.[4] However, Callaway's sales have maintained strong as of 2007, increasing 38% since 2003.[5] In addition, experts predict that the golf club market will see a growth rate of over 25% annually in China and India as golf continues to expand worldwide, a trend that benefits Callaway.[6]
Callaway depends on continual new product launches for its success, as customers come back to buy the latest technology. In 2007, the company's product launches had mixed results - sales of a new line of Top Flight balls called the Xtreme flopped, but the popular release of the Big Bertha 460 driver spurred a 15% increase in driver sales.[7] In June 2009, Callaway Golf announced it had completed its $140 million private offering of series B preferred stock. [8]
Business Overview
Callaway manufactures clubs, including drivers, woods, irons, wedges, and putters, under their brands Callaway and Ben Hogan, while developing golf balls under the names Callaway, Ben Hogan, and Top Flite. In addition, the company produces putters through their Callaway and Odyssey lines, and retail apparel (hats to shoes) and accessories (bags, umbrellas, other forms of gear) primarily through its Callaway logo.[9] Callaway, Ben Hogan, Top Flite, and Odyssey are all well known to the golfing community because of endorsements by top professional golfers, like Phil Mickelson, Arnold Palmer, and Annika Sorenstam. The company retails goods worldwide, with international sales of 50.4%.[10]
Business Segments
The company's business segments are organized into the Golf Clubs segment and the Golf Balls segment.
Golf Clubs Segment (80% of sales, 95.1% of operating income)[11]
Irons (27.6% of sales): The company sells irons and wedges under the Callaway Golf, Top-Flite, and Ben Hogan names. Callaway earned $309.6 million in revenue from iron sales in 2007, which represented a 8% increase from a year earlier.[7] The company attributes several new successful product launches, including the X-20 series irons, for the rise in sales.
Drivers and Fairway Woods (24% of sales): Callaway designs and sells drivers and fairway woods under the Callaway Golf, Top-Flite, and Ben Hogan brand names. The company earned $268.3 million in revenue from the sales of drivers and fairway woods, or 24% of its total 2008 revenue.[12] Woods sales decreased $37.6 million (12%) to $268.3 million from 2007 as a result of declines in both average selling prices and sales volume, as well as a decreased number of new driver models. [1] As a result of said decline, Callaway announced that it would get rid of its FT IQ driver line in September 2009, after only one year on the market.[13]
Accessories and Other (17% of Revenue): This segment includes Callaway's sales of golf-related accessories like golf bags, footwear, gloves and umbrellas as well as royalties earned through licensing of the company's logo on apparel, watches, and travel gear. Together, accessories sales reached $186.9 million in 2007, or 17% of the company's revenue.[7] This represents a 17% increase from 2006 which was mainly due to higher sales of Callaway footwear.[7]
Golf Balls (20% of sales, 4.9% of operating income [11])
Callaway earns 20% of its revenue from sales of golf balls under the Callaway Golf and Top-Flite brand names.[1] Golf ball sales increased 5% in 2008 to $223.1 million due to an increase of $17 million in Callaway Golf ball sales offset by a $6.2 million decrease in sales of Top-Flite balls. [1] Operating profit from golf balls increased from just $0.9 million in 2007 to $6.9 million in 2008. [11]
Putters (9.1% of Revenue)[1]:
Callaway also sells putters under the Odyssey, Callaway Golf, Top-Flite, and Ben Hogan brand names. Putter sales accounted for 9.1% of the company's revenue in 2008, reaching $101.7 million.[1] Sales of putters increased 7% during 2008 resulted from a decrease in sales volumes partially offset by an increase in selling price.[14]
Financial Analysis
Callaway reported $1.11 billion in revenue in 2008, a slight decrease from $1.12 billion in 2007.[15] [16][5] Callaway's net income totaled $66.1 million in 2008, a 28% increase from $54 million in 2007.[15] The company's growth in net income is attributed primarily to its increase in gross margin (5% increase) as well as increased sales worldwide. Furthermore, the company's SG&A and research and development expenses as a percentage of revenue remained constant during 2007, which added to Callaway's net income growth.[17] The company's golf clubs segment (including all types of clubs and the accessories category) continues to be the most crucial aspect of the company's financial success as it operated at a 16.7% operating margin in 2007, compared to 0.42% for golf balls.[18]
In the second quarter of 2009, the company reported net income fell 82% to $6.5 million, down from $37.1 million in the year ago period, disappointing analysts.[19] Net sales fell 17 percent to $302.2 million, hurt by weak consumer spending and currency fluctuations. [19]
Key Trends and Forces
Declining Golf Industry Challenges Callaway's Sales
The number of yearly golf rounds is an effective indicator for the annual sales of golf equipment. In 2006, 501 million golfers rounds of golf were played in the U.S., down from its peak of 518 million in 2000. The population (golfers who play at least eight rounds a year) in 2006 was 15 million, down from the record of 17 million in 2000.[4]
Number of Annual Rounds of Golf Played in the United States [20]
In 2006, for the first time in over half a century, the golf industry did not see any net increase of facilities from the previous year (119 new courses opened while 146 closed down). As a benchmark, 400 courses were introduced in 2000.[21] However, Callaway continues to grow as of 2007, with a 10.5% increase in sales during 2007, mainly due to a 21% increase in European sales as the company continues to seek expansion opportunities abroad.[16]
Economic downturns also reduce demand for ELY's products as many consumers forgo purchases on luxury items like new drivers. ELY has cited softening worldwide sales following the 2007 Credit Crunch and subprime lending crisis. For example, in Q3 2008, its sales dropped about 9.1% from a year earlier to $213.5 million[22] Additionally, the company reported a net loss of $7.4 million, because of its decline in sales and costs associated with previous acquisitions.[22]
One interesting factor that will help golf's popularity (along with Callaway's business) is the announcement that golf will make its return to the Olympic games in 2016, which will increase its exposure to the world and introduce it to a new generation of people.[23]
Callaway's brand equity depends on the performance of its endorsed players
The performances of the professional golfers sponsored by Callaway strongly relates to sales. When a pro golfer uses certain equipment to win a tournament, that company experiences tremendous exposure to the media and receives praise from its peers. Amateur golfers of all levels generally want to play with the same types of equipment (clubs, balls, gear) the successful professionals trust. Callaway equipment is represented well on major tours:
Callaway Endorsement Players [24]
PGA Tour European Tour Champions Tour LPGA Tour Legends
Phil Mickelson Thomas Bjorn Bruce Fleisher Annika Sorenstam Arnold Palmer
Ernie Els Michael Campbell Jim Colbert Morgan Pressel Gary Player
Nick Flanagan Nick Dougherty Eduardo Romero Julieta Granada Johnny Miller
Olin Browne Niclas Fasth Mark McNulty Leta Lindley David Leadbetter
Due to the general trend of short product life cycles, Callaway's new releases must drive its revenue
New Callaway products have an average life of two years, with most of its sales occurring in the first, and generate about 55% of the company's annual sales.[25] As a result, Callaway faces the challenge of having to release fresh products every year to accommodate its consumers. The company's struggles with inventing novel clubs can be seen by the decline in research and development expenses since 2004:
Callaway's Annual Research and Development Expenses [26]
Despite its downward trend of innovating profitable products, Callaway looks forward to a successful 2008 with the help of its strong brand equity and by introducing the following products to the market:
Popular Callaway Products [27]
Golf Digest 2008 "Hot List" Category Club Price
Drivers FT-5, FT-i, Hyper X $430, $500, $299
Fairway Woods FT, X $250, $200
Player's Irons X-20 Tour $800
Game-Improvement Irons X-20 $700
Super Game-Improvement Irons Big Bertha $800
Putters Odyssey Black Series 1, Odyssey White Hot Tour $270, $160
Balls Tour/iTour iX $45/dozen
Seasonal fluctuations impact golf rounds played and Callaway’s sales
Warm weather is the ideal condition for golf, and consequently Callaway generates approximately 65% of its revenue during the spring and summer. In addition, golf companies experience financial success when their players perform particularly well in the Majors (Masters in April, U.S. Open in June, British Open in July, PGA Championship in August)), which coincides with prime golf season in America. An abundant quantity of golfers hang their clubs during the cold months of fall and winter, resulting in a decrease of rounds played in the second half of the year. In the short term, Callaway is expected to get a slight boost from the three week extension of daylight savings time starting in 2008, as this should increase the number of rounds played in some North American markets.
Competition
Callaway encounters fierce competition in each of its departments, but has climbed its way to become one of the top retailers in four of the main golf equipment categories.[28]
Callaway Products by Market Share of Total Golf Equipment Industry [29]
Market Share Ranking
Callaway Woods 17.0% #2
Callaway Irons 24.2% #1
Callaway Brand Balls 10.9% #2
Odyssey Putters 36.0% #1
Callaway's competitors include:
Fortune Brands (FO): The Acushnet Company is Fortune Brand's golf division and runs the following companies: Titleist, Cobra Golf clubs, Pinnacle balls, FootJoy gear, and Scotty Cameron putters. Acushnet is the top U.S. selling golf product in balls (Titleist) and shoes (FootJoy). The company earned $1.4 billion in revenue in 2007, a 7% increase from a year earlier which the company attributes to increases in international sales and new product introductions.[30]
TaylorMade/adidas golf : Bought out by Adidas in 1997, TaylorMade manufactures golf clubs, balls, and accessories, while Adidas deals with apparel. Although it is ranked second in world club distribution, more PGA Tour professionals play with TaylorMade drivers than Callaway, Cleveland, Cobra, Nike, and Ping combined.[31][32]
Nike (NKE): Nike competes in all departments of the golfing market: clubs, balls, and gear. Always a leader in athletic innovations, Nike's golf equipment is used by Tiger Woods.
Cleveland Golf: SRI Sports Limited, a Japan-based sporting goods company that sells tennis and golf equipment through their Dunlop and Srixon licenses, acquired Cleveland Golf in December of 2007. Their golf brands are number one in club sells and number two in ball sells in Japan.[33] The company sells drivers through wedges and produces putters under their brand, Never Compromise.
Ping Golf: Ping has proven to be a competitor in all categories of golf clubs. Their new products won awards in Golf Digest's 2008 Hot List for game-improvement irons and putters.[34]
Fortune Brands, Adidas, and Nike are the three largest companies Callaway faces in the U.S.:
Company Revenue 2007 (Millions) Net Income (Millions) Gross Margin
Callaway $1,124.6 $54.6 44%
Fortune Brands (FO) $8,563[35] $762.6[35] 46.7%[35]
TaylorMade-AdidasGolf €804[36] €65 (operating profit)[36] 44.7%[36]
Nike (NKE) (2008 Data) $18,627[37] $1,883.4[37] 45%[37]
The following clubs are expected to compete with Callaway this year:
Callaway Products to be Launched in 2008 [38]
Golf Digest 2008 "Hot List" Category Club Price
Drivers Cleveland HiBore XLS $300
Fairway Woods Nike SQ Sumo2 $230
Player's Irons Cleveland CG Red $700
Player's Irons TaylorMade r7 TP $800
Game-Improvement Irons Ping G10 $700
Game-Improvement Irons TaylorMade r7 $700
Super Game-Improvement Irons Cleveland HiBore $700
Super Game-Improvement Irons Cobra S9 $800
Putters Nike IC 20-10 $140
Putters Ping I-Series $120
Balls Titleist Pro V1/Pro V1X