Callaway 2009 Annual Report Download - page 5

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A N N U A L R E P O R T 2 0 0 9
This balanced approach, while costly to short-term profitability, allowed us to accomplish
a great deal in 2009 and set a positive base going into what we believe will be a solid
recovery year in 2010. We outperformed most of our competitors in the consumer
arena. In the major golf club categories, our woods, irons and putters saw an increase
in market share, illustrating the strength of our product line. In fact, Callaway finished as
the #1 Irons in Golf for the 13th straight year, Odyssey continued its strong position as
the #1 Putter in Golf, our woods gained momentum and we grew our leadership position
in Asia with our Legacy brand of products.
Our uPro business, a late 2008 acquisition, was fully integrated into the Callaway family
and saw immediate acceptance as golfers discovered just how impressive and helpful
this unique GPS distance measurement device was to their games.
Callaway’s soft goods business continued to show impressive increases in market share
and revenue growth. We were pleased to reach an agreement last year with Perry
Ellis International to be the exclusive designer and manufacturer of Callaway Apparel
in the U.S. Perry Ellis has an impeccable reputation as a creative design house and its
expertise in innovative and modern fashion technologies aligns perfectly with Callaway’s
performance values.
We were also very pleased with the International Olympic Committee’s decision to
return golf to the 2016 Olympic Games in Rio de Janeiro. Callaway, together with golf’s
governing bodies, were strong advocates for the sport’s Olympic inclusion for the first
time since 1904, and it was gratifying to see our efforts come to fruition.
Showcasing golf on the Olympic stage presents a unique opportunity for Callaway.
Currently, about half of the Company’s revenues are generated outside the U.S., and
we believe our international business will be one of our biggest growth engines for the
future. Having golf in the Olympics will enhance our efforts with increased exposure that
is expected to spur interest in the game from an entirely new audience that has had little
or no experience with golf.
To further capitalize on this significant growth opportunity, we expanded our presence
in key regions that include Southeast Asia and China, while laying the groundwork for
our launch into India. China and India represent our most promising emerging markets,
each a potential $1 billion golf industry over the long term.