Topgolf in Q3 delivered $334M in sales, exceeding expectations thanks to increased walk-in traffic and small group gatheringsGETTY IMAGES
Callaway Golf reported “better than expected” revenue for Q3, “driven by Topgolf’s bounce back from the pandemic, momentum in its TravisMathew and Jack Wolfskin clothing brands, and continued demand for its core golf gear,” according to Mike Freeman of the SAN DIEGO UNION-TRIBUNE. Revenue for the quarter came in at $856M, up 80% from the prior year, "mostly because of the addition of Topgolf in March," which was acquired by Callaway for $2B. In Q3, Topgolf delivered $334M in sales, “exceeding expectations thanks to increased walk-in traffic and small group gatherings.” Same-store sales “rebounded to pre-pandemic levels.” Callaway President & CEO Chip Brewer said that in Callaway’s core golf gear business, demand “remained strong despite supply chain hiccups.” Sales increased to $290M in the quarter, up $23M from a year ago. Callaway’s TravisMathew, Jack Wolfskin and other apparel brands “rang up sales” of $233M in the quarter, a gain of $25M year over year. For Q3, Callaway posted adjusted earnings of $26M. That is down from earnings of $59M last year. The decline “stemmed from higher expenses related to the addition of Topgolf,” among other things. Looking ahead, Callaway is “forecasting full-year revenue” of $3.1B, compared with last year’s pre-Topgolf revenue of $1.6B (SAN DIEGO UNION-TRIBUNE, 11/10).
