Callaway Golf Co., the Carlsbad maker of clubs, balls and golf accessories, reported net income of $38.4 million, or 40 cents per diluted share, on net sales of $274.1 million during its first quarter, which ended March 31.

Net income improved 7 percent from $35.8 million (39 cents per share) in the first quarter of 2015 — even though net sales dropped 3.5 percent from $284.2 million in the first quarter of 2015.

The company released financial results April 27.

Looking ahead, the company forecast 2016 earnings of 40 cents to 50 cents per share, an improvement from 17 cents per share in 2015. Callaway said it expects improved profitability and some 18 cents per share attributable to the monetization of its strategic investment in Topgolf, a chain of driving ranges.

The company’s forecast for net sales is $855 million to $880 million, up from $844 million in 2015.