This Businessweek story explains Callaway's huge stock drop yesterday.
The stock price tumbled 11.3% to $12.51 per share on the New York Stock Exchange in afternooon trading Tuesday.
Callaway, which is in the midst of a restructuring announced in September, 2005, noted challenges such as lower sales at key golf retailers during June through September, and a related decrease in wholesale re-orders. The company had introduced no major new products during the quarter; the FT-3 driver, Fusion fairway woods, X-18 driver in Japan, and HX-56 golf ball hit the market during the same period of 2005.
Sales of the Top-Flite and Hogan products have not performed to expectations. "We are in the process of restoring these brands, targeting a formal re-launch of Top-Flite in 2007," George Fellows, President and CEO of Callaway Golf, said in a press release.
Restoring the Top Flite brand? From cheap bottom of the barrel rock hard balls to...?