Global Edition

Topgolf Callaway Brands reports Q1 financial results

4.03pm 13th May 2024 - Corporate

Topgolf Callaway Brands disclosed its first-quarter financial results last week, with the company reporting a mixed financial performance with revenue aligning with expectations, but net income exceeding forecasts.

The company’s portfolio includes brands such as Topgolf, Callaway Golf and Odyssey, with its revenue predominantly being driven by its Topgolf segment, which includes service revenues from company-operated venues, Toptracer technology, and the WGT digital golf game, primarily in the United States.

The company posted Q1 2024 revenues of $1.144 billion, a decline of 2% from the previous year, primarily due to a 15.2% drop in its Active Lifestyle segment, which includes outdoor apparel brand Jack Wolfskin. This decline was said to due to softer market conditions in Europe and challenges in the wholesale channel, although the deficit was somewhat offset by growth in Topgolf and its golf equipment sectors. 

Despite the revenue challenges, Topgolf Callaway Brands achieved a net income of $7 million, with net income standing at $16 million, both exceeding earlier forecasts. 

Topgolf showed resilience with a 4.8% revenue increase, attributed to new venue openings, despite a 7% drop in same venue sales due to adverse weather conditions and golf experiential demand dropping slightly following the post-Covid surge.

Callaway’s new Ai Smoke range has proved popular at retail

Callaway Golf’s sales grew by 1.4%, bolstered by successful launches of new products such as the Ai Smoke clubs and Chrome Tour golf balls.

While the company has lowered its annual revenue guidance by $80 million to a range of $4,435 to $4,475 million due to currency volatility, it remains optimistic about its bottom-line growth. Earnings per share expectations have been increased, reflecting improved operational efficiencies and financial strategies.

Chip Brewer, President and Chief Executive Officer, said: “Overall, we feel good about our start to 2024 and the strength of our core brands and markets. We remain confident in our targets for this year and are taking up our cash flow and EPS targets as well as starting the process of paying down debt. Perhaps most importantly, we believe the fundamental engine of our company is continuing to strengthen, and we feel great about our long-term direction and opportunity.”

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