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Home Callaway gets some help taking its product around the world

On last week’s conference call to Wall Street, Callaway Golf said it was going to diversify its approach in 2014 to generating higher sales. “If you look at our 2013 success, it has been driven largely by clubs, especially woods. For 2014, we are anticipating continuing our momentum in clubs, but also supporting it with a significantly improved position in both golf balls and accessories, two important categories where our revenues were down this year, but where we have high expectations for 2014,” stated Chip Brewer, Callaway’s CEO. “We've licensed out footwear and apparel, and we're happy with those positions. But we have a very large business in golf bags, gloves, towels, hats, et cetera. This is over $100 million business for us. And as we came in and really changed everything last year, in the time that was permitted to us, we had to focus. And we did, arguably, a very good job, as judged by the market reaction on the golf club side, particularly the woods. We didn't do as much as we're in the process of doing on the accessory and golf ball line. And I've got high expectations for those going into next year,” he added. Brewer and company isn’t wasting any time in getting its ducks in a row for next year. 

The company’s apparel licensee, Perry Ellis International has announced an agreement to expand its current partnership to design, manufacture and sell golf apparel across Europe, the Middle East and Africa. "We look forward to leveraging Callaway's global recognition to further grow a truly authentic and international golf apparel collection," stated Oscar Feldenkreis, President and Chief Operating Officer of Perry Ellis International. "We have become a market leader for golf and technical performance apparel, and will continue to make the necessary investments to make Callaway the premier golf apparel brand in the world. Given the current strength of the Callaway Golf brand, we believe this iconic brand will perform well in all geographic markets and help to further strengthen our relationships with our retail partners around the world."

Currently, the principal apparel distribution in the region is operated directly by Callaway Golf. Perry Ellis International will assume responsibility for distribution channels for golf apparel product across Europe, the Middle East, and Africa, transitioning on January 1st, 2014. The men's and women's European Callaway Fall 2013 line is currently available at retail in the UK, Ireland, Germany, Sweden, Norway, Spain, Portugal, Austria, Switzerland, Finland, Czech Republic, Turkey and the Middle East. The addition of South Africa as well as a full European rollout of the brand is expected by Spring 2014.

"Our strong relationship with Perry Ellis international's team will ensure a smooth transition for our customers and consumers, and I am confident that their expertise in all aspects of the golf apparel market will further enhance and grow the Callaway brand," said Brewer.

For the remainder of the 2014 Fiscal Year, Perry Ellis said it will make investments in staff and filling key open positions, upgrading product design of Callaway Golf apparel to reflect the expanded region and enhancing the existing operating infrastructure to perform the warehousing and fulfillment of the apparel products. Integration efforts and investments in the expanded distribution will intensify for the remainder of this year and into 2014 providing an infrastructure for international expansion.