Callaway relaunches Top-Flite
Some critics contend its déjà vu all over again, but regardless, Callaway Golf Company (NYSE: ELY) plans what it calls a “major relaunch’’ of its struggling Top-Flite golf ball brand in 2007. Without revealing specific details, Callaway President/Chief Executive Officer George Fellows said the Top-Flite relaunch will feature “different technology’’ and a ‘different consumer orientation.’’
Top-Flite golf ball sales, particularly in its premium models, Fellows said, dragged down Callaway’s overall ball sales in the second quarter of this year. The company reported ball sales in the quarter of $69 million compared to $71 million the second quarter of 2005. For the six months, Callaway’s ball sales were $124 million versus $129 million the same period in ’05.
“Our (Callaway ball) business is extremely solid and growing quite nicely,’’ Fellows said. “The Top-Flite business (acquired in 2003) has been a difficult business. It came on board in a rather damaged state and has lost some market share.’’
Fellows said Callaway is working to resolve some behind the scenes problems to help resolve some issues with Top-Flite and move the brand forward in ’07.
“There are manufacturing operations we’re looking at that will significantly impact the cost (of producing) the Top-Flite ball,’’ Fellows said.