Topgolf Callaway Brands Corp has unveiled a mixed set of results for trading in the first three months of the year, with its Topgolf chain achieving a 25% jump in revenue to $403.5m, while golf equipment sales were down 5% year-on-year to $443.7m.
The company reported total revenues up 12% to $1.17 billion, topping estimates at $1.14 billion. Its active lifestyle category, which includes apparel and footwear under brands like Jack Wolfskin, also rose 28% to $320 million.
Looking ahead, the company guided to Q2 revenue of $1.175 billion to $1.195 billion, up 5.7% from the year before, but below the consensus at $1.22 billion, as management cited concerns that the slowing global economy would impact corporate sales.
The company has raised its full-year revenue guidance to $4.42 billion to $4.47 billion, representing 11% growth. However, management cut its full-year adjusted EPS guidance from $0.70 to $0.78 to $0.63 to $0.69, a 20% decline at the midpoint.
Shares in the company dropped on the New York Stock Exchange following the publication of the results on May 10, with the share price falling from $21.68 to its current price of $17.60.
Topgolf Callaway Brands CEO and president Chip Brewer said: “With the March banking crisis and what we believe is a trend towards many companies further reducing corporate spend, we viewed it as prudent to lower our balance of year corporate sales expectations versus our original budget.”
He added: “The golf consumer remains engaged and our brands continue to be well-positioned to benefit from the sustained momentum in off-course and on-course golf.”