Another problem: a lawsuit claiming it stole the design for the hot-selling Two-Ball Putter. (Callaway says it bought the design fair and square from another party.) And even the luster of celebrity endorsers, including top golfer Annika Sorenstam , are little help against new rival Nike (nyse: NKE - news - people ), whose high-tech products and spokeschampion Tiger Woods are luring customers.

FORBES: Magazine Article