After a weak 2010, the golf equipment industry is expecting a revival this year. Manufacturers are ready to woo consumers with some innovative products. One company that particularly caught my attention is Callaway
What's on the course?
Callaway's net sales have been declining, owing to insufficient investment in both brand marketing and product-demand-creation initiatives. Peers Johnson Outdoors
However, the company has announced details of a finalized a restructuring plan that should yield gross annualized savings of approximately $50 million. The company intends to invest up to half of the savings in brand and demand creation initiatives, which should strengthen sales.
What's in the offing?
In September, Callaway's latest game-improvement iron and hybrid set RAZR XF hit the stores. The new look, design, and advanced features are advertised to enhance the performance of the product considerably. And don't forget the new footwear range -- RAZR is the company's most advanced golf shoe to date, which is expected to appeal to discerning players. The footwear range also includes the street-shoe-like Del Mar, a first for the company, and the fashion-forward KoKo for women. The 2012 footwear line has a temperature management system, Ortholite molded inserts, Callaway PINS performance spikes, and a waterproof, leather upper on some shoes. "This is the most technologically advanced and high-performance line of footwear in Callaway's history," said John Melican, senior vice-president of global soft goods at Callaway Golf. I believe the up-do-date features and experimentation in the 2012 line will help grow revenue.
Foolish bottom line
Callaway has a strong product line in its cart, which is one of the best-performing in the market. With the golf equipment industry showing promise, the restructuring plan should work in favor of the company. I think this company has the rub of the green on its side. This stock is definitely worth watching.
Fool contributor Abantika Chatterjee does not own shares of any of the companies mentioned in this article. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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