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Callaway Golf Company

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Callaway Golf Company
Company typePublic
NYSE: ELY
S&P 600 Component
ISINUS1311931042 
GenreGolf
Founded1982; 42 years ago (1982)
FounderEly Reeves Callaway, Jr.
Headquarters
Carlsbad, California
,
U.S.
Area served
Worldwide
Key people
Chip Brewer (CEO)
ProductsGolf equipment
RevenueIncrease US$ 1.2 billion (FY 2018)[1]
Increase US$31 Million (FY 2014)[2]
Increase US$16 Million (FY 2014)[2]
Total assetsDecrease US$625 Million (FY 2014)[3]
Total equityIncrease US$292 Million (FY 2014)[3]
Number of employees
2,400 (2018)
SubsidiariesOdyssey, OGIO, TravisMathew, Jack Wolfskin
Websitewww.callawaygolf.com

Callaway Golf Company is an American global sporting goods company that designs, manufactures, markets and sells golf equipment, golf accessories and golf lifestyle-related products in more than 70 countries worldwide. The American company, based in Carlsbad, California, is the world's largest manufacturer of golf clubs.

Callaway Golf sells its products through golf retailers and sporting goods retailers, through mass merchants, directly online, and through its pre-owned and trade-in services. Callaway Golf licenses its name, trademarks and service marks for golf lifestyle products including golf apparel, golf shoes, golf bags, headwear, watches, rangefinders, practice aids and travel gear.

Callaway Golf has also marketed products under the Odyssey putter brand, acquired in 1997,[4] as well as Top Flite, Strata and Ben Hogan golf brands picked up following the bankruptcy of Spalding's former golf division in 2003.[5] The Top Flite and Ben Hogan brands are no longer owned by Callaway.

History

Callaway Golf Company was founded by former Burlington Industries textile president, Ely Callaway Jr. Callaway was raised in LaGrange, Georgia, and was a graduate of Emory University. He had previously been successful in the textile and wine industries, and was also an avid golfer. Among his favorite club brands was Hickory Sticks USA, which was known for producing clubs with hickory shafts and steel cores. At that time, Hickory Sticks was owned by Richard Parente, Dick De La Cruz, and Tony Manzoni. When Hickory Sticks started running low on funds, they began seeking investors and approached Callaway, who had just sold his vineyards for a $9 million profit. In 1982, he bought half of Hickory Sticks USA and the company was renamed "Callaway Hickory Stick USA." In 1983, he became the company's president and moved its headquarters to Carlsbad, California where he could be found selling clubs out of his Cadillac. In 1984, Callaway bought the rest of the company for another $400,000. The company's name was changed to its present name in 1988.[6]

In 1985, the company hired Bruce Parker as head of sales, who later became the company's Chief Merchant and, through his tenure with Callaway Golf as head of sales, was responsible for sales in excess of $3.0 billion. He was involved in all major decisions during the company's growth.

In 1986, Callaway hired a billiard cue designer, Richard C. Helmstetter, as a consultant. Helmstetter was named chief club designer that same year and introduced computer-controlled manufacturing machines. With his help and that of Glenn Schmidt, the company's master tool maker, the company developed the original Big Bertha driver using large-volume (190cc) steel clubhead. The Big Bertha driver grew to 290 cc in 1997.[7]

In 1996, the company hired Roger Cleveland as chief club designer and in 2002, launched the Callaway Golf Forged Wedges, constructed from carbon steel with modified U-grooved faces.[8]

In 1996, Callaway announced development of a new golf ball, under the leadership of Chuck Yash, the former head of Taylormade Golf. Callaway Golf spent three years developing the ball and a state-of-the-art production facility. The company invested $170 million in research and development, and construction of the 225,000-square-foot (20,900 m2) production facility.

Callaway Golf Company engineers, recruited from Du Pont and Boeing, used aerodynamic computer programs (first used by Boeing and General Electric) to evaluate more than 300 dimple patterns and more than 1,000 variations of ball cores, boundary layers, and cover materials to create the new Rule 35 ball. They settled on only two versions of the Rule 35 ball—choosing to develop a "complete-performance" ball rather than separate balls developed for spin, control, distance, and durability. Ely Callaway explained the company's product development objectives as follows: "We have combined all of the performance benefits into one ball so players no longer need to sacrifice control for distance, or feel, or durability. Each Rule 35 ball contains a unique synergy of distance, control, spin, feel and durability characteristics. This eliminates confusion and guesswork in trying to identify the golf ball that is right for each individual golfer."[9]

In 1997, Odyssey Sports was acquired, expanding Callaway's line of putters.[4] This led to introduction of the Odyssey White Hot putter line in 2000.

Ely Callaway resigned as CEO and President in 1996, remaining as Chairman of the Board. Donald H. Dye was named CEO and President. Callaway also continued as President and CEO of Callaway Golf Ball Company. In 1998 he again became President and CEO of Callaway Golf Company, but died of pancreatic cancer on July 5, 2001. Ron Drapeau assumed his positions.[10]

In 2003 Drapeau announced the company's intention to purchase Top-Flite Golf and its Ben Hogan Golf division, soon after it filed for Chapter 11 bankruptcy. Due to competition from Adidas, the acquisition cost Callaway Golf $169 million.[5]

On November 8, 2004, Callaway Golf named Chairman and Chief Executive William C. Baker President and COO, replacing Patrice Hutin.[11]

In 2012, Oliver "Chip" Gordon Brewer III was named CEO of Callaway. Callaway sold the Top-Flite brand to Dick's Sporting Goods, citing declining sales, [12] and the Ben Hogan brand to Perry Ellis International, with Callaway retaining several trademarks, including Apex and Edge. [13]

In 2017, Callaway acquired OGIO, a US-based bag and apparel brand, and TravisMathew, a California-based lifestyle and golf apparel brand.[14][15]

In 2019, Callaway acquired German outdoor apparel company Jack Wolfskin. [16]

In 2020, Joe Flannery was named Executive Vice President of Callaway.[17]

Tour professionals

PGA Tour

European Tour

LPGA Tour

Champions Tour

Icons

Source

Financial

In February 1992, Callaway Golf went public on the New York Stock Exchange with a market capitalization of $250 million. By late 1997, it reached a market capitalization of over $3.0 billion.

Endorsements

Callaway has endorsement deals with many professional golfers who play on the world's leading tours, including Maverick McNealy,[18] Sergio García[19] and Xander Schauffele.[20] They also have commercial relationships with some of the legends of the sport including Arnold Palmer and Annika Sörenstam, and celebrities such as Justin Timberlake. After being endorsed by Callaway late in his career, Seve Ballesteros expressed his gratitude to Ely Callaway by giving him a vintage Rolex, one he had worn since he first signed with the watchmaker.[21] Garcia ended his association with Callaway in January 2020[22] and was replaced by Matt Wallace, who signed an endorsement deal.

Awards

On December 8, 2005, Callaway Golf received the 2005 Torch Award for Marketplace Ethics, from the San Diego Better Business Bureau.

References

  1. ^ "Callaway Golf Company Profile". Craft. Retrieved August 30, 2019.
  2. ^ a b Market Watch - Investment Bulletin 1
  3. ^ a b Market Watch - Investment Bulletin 2
  4. ^ a b "Callaway Golf in $130 Million Deal for Odyssey Sports". New York Times. July 22, 1997. Retrieved October 15, 2008.
  5. ^ a b "Company news; Callaway Golf beats out Adidas to buy top-flite". New York Times. September 5, 2003. Retrieved October 15, 2008.
  6. ^ Golf - CBSSports.com CBS Sports - Golf
  7. ^ Callaway Golf Company - Company History
  8. ^ Callaway Forged Wedge
  9. ^ Callaway Golf Company Online Case
  10. ^ IPA Bulletin
  11. ^ "Callaway Golf Names Baker President, COO". Archived from the original on September 24, 2015.
  12. ^ Mike Stachura (April 4, 2012). "Callaway sells Top-Flite to Dick's". Golf Digest. Retrieved December 24, 2015.
  13. ^ Achenbach, James (September 5, 2013). "Callaway to resurrect Apex irons". Golfweek. USA Today. Retrieved July 29, 2020.
  14. ^ Callaway Golf Company (January 11, 2017). "Callaway Golf Company Acquires OGIO International, Inc., A Leading Lifestyle Brand, For $75.5 Million". Callaway Golf Company. Retrieved January 22, 2019.
  15. ^ Callaway Golf Company (August 21, 2017). "Callaway Golf Company Completes Acquisition Of TravisMathew For $125.5 Million And Updates TravisMathew Financial Guidance". Callaway Golf Company. Retrieved January 22, 2019.
  16. ^ Callaway Golf Company (January 4, 2019). "Callaway Golf Company Completes Acquisition Of Jack Wolfskin, A Premium Outdoor Apparel Brand, For €418 Million". Callaway Golf Company. Retrieved January 22, 2019.
  17. ^ "Callaway Golf hires executive to run expanding apparel business". San Diego Union-Tribune. March 2, 2020. Retrieved March 3, 2020.
  18. ^ Johnson, E. Michael. "Maverick McNealy signs endorsement deal with Callaway - Golf Digest". Golf Digest. Retrieved April 24, 2018.
  19. ^ "Callaway signs Sergio Garcia to endorsement contract". Golf Week. January 2, 2018. Retrieved April 24, 2018.
  20. ^ "Callaway signs Xander Schauffele to endorsement deal". Golf Week. January 3, 2018. Retrieved April 24, 2018.
  21. ^ "Ballesteros 'Could Get Up and Down Out of a Garbage Can'".
  22. ^ "Sergio Garcia Splits From Callaway | Spaniard Now A Free Agent". Golf Reviews Guide | Equipment, Courses and Golf Deals. January 17, 2020. Retrieved February 4, 2020.
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