Callaway Golf Co. said second-quarter profit will rise year-over-year, but warned that sales will decline and fall shy of Wall Street expectations amid a "very challenging" U.S. economy.
Callaway, which manufactures golf balls and clubs, said late Thursday it expects second-quarter profit between 56 cents per share and 58 cents per share, including a 5-cent charge related to cost cuts. A year ago, the company earned 53 cents per share, including a 2-cent charge.

The company forecast revenue around $366 million, down from $380 million a year earlier.

Analysts polled by Thomson Financial, who typically exclude one-time items from their forecast, expect adjusted earnings of 62 cents per share and higher sales of $375.5 billion.

The company will report second-quarter results on July 30.

For the year, Callaway reiterated its outlook for adjusted earnings at the lower end of an expected $1.08 to $1.18 per share range on sales of $1.15 billion to $1.17 billion.

On average, ana......