Callaway 2008 Annual Report Download - page 51

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drivers, X fairway woods and region specific Hyper ERC titanium drivers. The decrease in sales volume was due
to a decline in sales of the Company’s older Fusion Technology drivers partially offset by the current year launch
of Fusion Technology fairway woods and hybrids and X fairway woods.
The $1.1 million decrease in net sales of irons to $308.5 million for the year ended December 31, 2008,
resulted from a decrease in sales volume partially offset by an increase in average selling prices. The decrease in
sales volume was primarily due to an anticipated decline in sales of the X-20 and X-Forged irons, which were
launched during the first quarter of 2007. These decreases were partially offset by an increase in sales volume of
the current year Fusion Technology irons, X-Forged series wedges and the fourth quarter launch of X-22 irons.
The increase in average selling prices was primarily due to a favorable shift in product mix as a result of the
current year introduction of premium Fusion Technology irons and X-Forged Series wedges, which carry higher
average sales prices than the X-20 and X-Forged irons launched in the prior year. This increase in average selling
prices was partially offset by closeout pricing taken on older Big Bertha irons during 2008.
The $7.4 million (7%) decrease in net sales of putters to $101.7 million for the year ended December 31,
2008, resulted from a decrease in sales volumes partially offset by an increase in average selling prices. The
decrease in sales volume was primarily due to a decrease in sales of the Company’s older White Hot XG series
putter models and White Hot two-ball putters. The increase in average selling prices was primarily attributable to
the current year introduction of the premium Black Series-i putter line, which carries a higher sales price than the
Black Series putters launched in the prior year.
The $28.7 million (15%) increase in sales of accessories and other products to $215.6 million was primarily
attributable to the current year introduction of the Top-Flite packaged recreational sets in addition to an increase
in sales of the Callaway Golf Collection line of accessories and golf gloves.
Golf Balls Segment
Net sales information for the golf balls segment is summarized as follows (dollars in millions):
Years Ended
December 31, Growth (Decline)
2008 2007 Dollars Percent
Net sales:
Golf balls .................................................. $223.1 $213.1 $10.0 5%
The $10.0 million (5%) increase in net sales of golf balls to $223.1 million for the year ended December 31,
2008, was due to a $17.0 million increase in Callaway Golf ball sales, partially offset by a decrease of $6.2
million in sales of Top-Flite golf balls. The increase in Callaway Golf ball sales was due to an increase in sales
volume and average selling prices. The increase in sales volume and average selling prices was primarily due to
favorable consumer acceptance of premium HX Tour i and Tour ix series golf balls and the HX Hot Bite golf
balls, launched during the current year, which have higher average selling prices than the Big Bertha and HX Hot
golf ball models launched in 2007. The decrease in Top-Flite golf ball sales was primarily due to a decrease in
sales volume primarily resulting from a reduction in sales of the older generation XL golf ball models as well as
the D2 golf balls. This decrease was partially offset by an increase in sales volume of the new Gamer and Freak
golf ball models, which were introduced during the first quarter of 2008.
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