Carlsbad-based Callaway Golf Co. reported net income of $35.8 million on net sales of $284.2 million for the first quarter of 2015. Revenue slipped 19 percent from the same period of 2014, when the golf equipment maker reported net income of $55.3 million on net sales of $351.9 million.
Callaway (NYSE: ELY) used the occasion to bump up its forecast, giving itself a better chance to break even in 2015. The new estimate ranges from a net loss of 3 cents per share to net income of 4 cents per share. Previously, the business said it expected a net loss of 9 cents per share to a loss of 1 cent per share. The company said that manufacturing improvements and a better sales mix ought to drive the financial results toward profitability.
The business also lowered its revenue forecast for 2015, predicting net sales in the range of $840 million to $860 million, down from its previous forecast of $855 million to $880 million.
A strong dollar promises to put a crimp in Callaway’s overseas sales. The company has a hedging program to deal with currency fluctuations, but the program promises to “mitigate but not eliminate” the effects of future foreign currency rate changes. The business said that on a constant currency basis, its 2015 sales forecast is $890 million to $910 million.
Callaway operates on a conventional calendar with its first quarter ending March 31.