* Q3 adj loss/shr $0.28 vs est loss/shr $0.17
* Q3 sales $175.6 mln vs est $192 mln
* Q3 gross margins 28 pct, down from 31.2 pct yr-ago
Oct 26 Callaway Golf Co (ELY.N) reported weak quarterly results, as lower volumes hurt gross margins, and said it sees the golf industry recovery being delayed into 2011.
"Global economic conditions continue to be challenging and the golf industry has not recovered as we had anticipated coming into this year," Chief Executive George Fellows said.
Callaway posted a third-quarter loss of $20.9 million, or 33 cents a share, compared with a loss of $16.1 million, or 25 cents a share, a year ago.
Excluding items, it posted a loss of 28 cents a share.
Revenue fell 8 percent to $175.6 million.
Analysts on average were expecting a loss of 17 cents a share, on revenue of $192.0 million, according to Thomson Reuters I/B/E/S.
Gross margins fell to 28 percent from 31.2 percent at the company, which competes with Fortune Brands Inc's FO.N Acushnet Co, Adidas AG's (ADSGn.DE) TaylorMade unit and Nike Inc's (NKE.N) golf division.
Shares of Carlsbad, California-based Callaway closed at $6.99 Tuesday on the New York Stock Exchange.
The stock has shed more than a quarter of its value over the past six months as the U.S. golfing recovery did not pan out as expected. (Reporting by Mihir Dalal and Viraj Nair in Bangalore; Editing by Roshni Menon)