Callaway 2010 Annual Report Download - page 7
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2010 ANNUAL REPORT
Inventory levels at retail are reasonable,
allowing our customers to have the flexibility
to respond to market demands. And the
decline in promotional activity that occurred
in 2010 has thus far continued into 2011.
We are also beginning to see significant
recoveries in certain industries that could
provide a positive boost for the golf industry.
For example, automobile and financial
services companies, which are typically big
supporters of golf, drastically scaled back
their discretionary spending in light of the
economic crisis. Now that some constraints
have been eased and those companies’
overall financial results show continued
improvement, their sponsorship, advertising
and playing of golf are expected to increase.
While these factors are cause for some opti-
mism, it is tempered by the recent natural
disasters in Japan. Our hearts and thoughts
go out to the people in Japan affected by
that tragedy. We were fortunate that all of
our employees in Japan were safe and our
facilities undamaged. Those events will un-
doubtedly have some effect on our business,
but as I write this letter, it is too early to know
to what degree.
It’s been said that playing golf is as much
about believing as it is about talent. It’s having
the confidence to feel completely in control
of your game, to know you can accomplish
anything when you’re out on the course.
This axiom closely mirrors where we are as a
company. We fully believe that better days are
ahead and that we have the correct plan in
place for sustained success. We’re confident
we have the best performing products in the
game and that golfers all over the world will
want to put our equipment in their golf bags.
And we also have the in-house talent neces-
sary to successfully execute our goals.
As I mentioned earlier, our long-term invest-
ments are beginning to pay dividends and
will continue to do so into the future. As a
company, we are poised to take full advan-
tage of the recovery as it unfolds, and as a
result, we expect our financial results to im-
prove significantly this year. Our success in
2011 will ultimately be driven by the degree
to which consumers return to purchasing
golf equipment once the golf season opens
in most of our major regions.
With it looking like the worst of the
economic headwinds are behind us, we
now can be proactive instead of reactive
and we can get back to doing what we
do best — selling the most innovative golf
equipment in the game.
I would like to thank all of our talented
employees for their loyalty and dedication,
our customers for their ongoing support of
our brands, and our consumers for making
our products a part of their golfing lifestyle.
And to our shareholders, I want to thank you
for your patience and enduring support for
Callaway Golf during this challenging period.
Sincerely,
George Fellows
President and Chief Executive Officer
March 21, 2011