NEW YORK (AP) ¿ Shares of Callaway Golf Co. declined on Friday, after the golf equipment retailer predicted a bigger third-quarter loss amid waning consumer spending that has dampened demand for discretionary items. The stock retreated 46 cents, or 5.3 percent, to $8.29 in midday trading after sinking as low as $7.93 earlier in the day. Callaway said it will post a loss of 25 cents a share, larger than the loss of 12 cents a share posted a year earlier. Callaway expects sales to decline 11 percent, as well, but the company said that's an improvement from the first two quarters of 2009. Stifel Nicolaus analyst Thomas Shaw said the preliminary third-quarter results are a "reality check." "The golf business structurally should not look better until early 2010," Shaw wrote in a client note. Shaw said the golf season has ended, promotions remain high, and consumers are simply looking for value right now. Still, Shaw kept a "Buy" rating on the stock for long-term factors, including momentum from the Olympics. Golf has been added as an Olympic sport in 2016.
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