Latest news with #ChipBrewer
Yahoo
07-08-2025
- Business
- Yahoo
Why Topgolf Callaway Rallied Today
Key Points Topgolf Callaway beat revenue and earnings expectations last night. The declines in its Topgolf segment are lessening thanks to some pricing and strategy adjustments. The company still intends on spinning off Topgolf, but it may not happen until next year. 10 stocks we like better than Topgolf Callaway Brands › Shares of golf giant Topgolf Callaway (NYSE: MODG) rallied 8.8% on Thursday. The company delivered earnings last night that beat expectations across the board. Investors may also be looking forward to the spinoff of Topgolf, even though it may be pushed into next year in light of the unit CEO's resignation. Better-than-expected strength across the business In the second quarter, Topgolf Callaway saw revenue decline slightly by 4.1% to $1.11 billion, with adjusted (non-GAAP) earnings per share down 45.2% to $0.24. While results were down, they also reflected the divestiture of the company's Jack Wolfskin apparel business. Moreover, both figures came in ahead of analyst expectations as results got "less bad." The core golf equipment business was down just 1.4%, and Topgolf, which had been a bigger problem, was down "only" 1.2%, as new price cuts seemed to work in spurring traffic. CEO Chip Brewer noted: These results reflect continued consumer strength in our golf equipment business, the benefits from our gross margin and cost savings initiatives across each segment of our business, as well as the success of Topgolf's value initiatives, which have significantly improved traffic and sales trends in the venues. We are also pleased that these results, along with current trends, are allowing us to absorb the increased tariffs this year and increase our full year outlook for our ongoing businesses. Investors seemed to be particularly enthusiastic about Topgolf's improvements. Even though revenue was down slightly in the quarter, management raised full-year guidance for the unit from a revenue decline of 6% to 12% to a narrower range of a 6% to 9%. Management also raised the low end of the company's adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) range, perhaps alleviating some concerns over worst-case scenarios. Topgolf is an interesting special situation ahead of next year's spinoff While still seeing revenue declines, Topgolf stock remains close to 75% below its 2021 highs. After that much of a decline, the stock had gotten quite cheap, and was perhaps ripe for a rally off any news of improvements. The company is still pursuing the spinoff of 80% of the Topgolf segment, which Callaway acquired back in 2021 and could perhaps "unlock" value by optimizing each unit's capital structures. While the spinoff was supposed to happen later this year, Topgolf's CEO announced his resignation on July 31, and will stay on through September to transition a new leader. In that light, the company said it now expects the spinoff to be pushed to early 2026. Even though the stock has rallied recently and is a bit risky, Topgolf Callaway could still be a value play if the spinoff goes well and consumer demand stabilizes. Should you invest $1,000 in Topgolf Callaway Brands right now? Before you buy stock in Topgolf Callaway Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Topgolf Callaway Brands wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $635,544!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,099,758!* Now, it's worth noting Stock Advisor's total average return is 1,046% — a market-crushing outperformance compared to 181% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Billy Duberstein and/or his clients have no position in any of the stocks mentioned. The Motley Fool recommends Topgolf Callaway Brands. The Motley Fool has a disclosure policy. Why Topgolf Callaway Rallied Today was originally published by The Motley Fool
Yahoo
03-08-2025
- Business
- Yahoo
Topgolf CEO Artie Starrs announces his resignation
You can find original article here Nrn. Subscribe to our free daily Nrn newsletter. Topgolf Callaway Brands Corp. announced the resignation of Topgolf CEO Artie Starrs, who has accepted another CEO position at a different brand. Starrs will remain on at the eatertainment company through September as Topgolf searches for a new chief executive. 'We thank Artie for his leadership and many contributions to Topgolf and wish him well in his new endeavor,' Chip Brewer, president and CEO of Topgolf Callaway Brands, said in a statement. Callaway Brands announced last September that the company intended to spin off the Topgolf brand less than four years after Callaway acquired Tolfgolf in March 2021 for $2.6 billion and changed its name to Topgolf Callaway Brands to reflect the merger. 'Artie's departure does not affect our strategic direction or commitment to separating Topgolf, and we are still pursuing a spin-off or sale of Topgolf,' Brewer continued. 'Given this development, it is likely that a spinoff transaction would not occur until 2026, after a new CEO is in place." Topgolf Callaway Brands Corp. has a portfolio of brands that includes Topgolf, Callaway Golf, TravisMathew, Toptracer, Odyssey, and OGIO. Topgolf currently has 96 locations in the U.S., per recent Technomic data. "We are pleased with Topgolf's second quarter financial results and improving same venue sales trends, which reflect the significant actions taken this year," Brewer said. "We look forward to providing more detail when we report our Q2 earnings next week.' Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
02-08-2025
- Business
- Yahoo
Topgolf spinoff delayed amid CEO's departure
This story was originally published on Restaurant Dive. To receive daily news and insights, subscribe to our free daily Restaurant Dive newsletter. Dive Brief: Topgolf CEO Artie Starrs will resign from the company, parent Topgolf Callaway said in a Thursday press release. He will remain with the firm through September to help with the transition. Starrs is leaving to become CEO at an undisclosed company. Topgolf Callaway is searching for his replacement. Starrs has been Topgolf's CEO since 2021, according to his LinkedIn profile. He previously spent more than seven years at Pizza Hut. Starrs' departure will delay the spinoff of Topgolf to 2026 instead of this year, Chip Brewer, president and CEO of Topgolf Callaway Brands, said in a statement. Dive Insight: Callaway merged with Topgolf in 2021 to bring the driving range and golf products company under one umbrella. But after a few years together, the combined business is planning to break up with Topgolf Callaway planning to sell off 80% of Topgolf. The separation will allow management to simplify its operational structures, boost capital allocation and improve its strategic focus. During Starrs' time at Topgolf, the eatertainment chain grew from 67 U.S. venues in 2021 to 96 domestic venues as of the first quarter, according to a 10-K filing. However, Topgolf has struggled with growing revenue. In the first quarter, company revenue declined by 6.9% to $394 million compared to the year-ago quarter, where it made about $423 million, according to an earnings release. Topgolf's same venue sales were down 12% but that drop was within the company's expectations. Topgolf remains popular with consumers, especially among people with an annual household income of $100,000 or more. However, middle-income consumers have found Topgolf too expensive. The company is working to improve its value proposition with things such as Sunday, Funday and Topgolf Nights, Brewer said during a May earnings call. Sunday Funday, in particular, helped boost traffic 20%, according to an earnings presentation. 'We are pleased with Topgolf's second quarter financial results and improving same venue sales trends, which reflect the significant actions taken this year,' Brewer said in the press release about Starr's departure. Recommended Reading Topgolf will be spun off by its parent company Sign in to access your portfolio
Malaysian Reserve
02-06-2025
- Business
- Malaysian Reserve
Topgolf Callaway Brands Completes Sale of Jack Wolfskin to ANTA Sports
CARLSBAD, Calif., June 2, 2025 /PRNewswire/ — Topgolf Callaway Brands Corp. (NYSE: MODG) ('Topgolf Callaway Brands' or the 'Company') is pleased to announce the successful completion of the sale of its Jack Wolfskin business to ANTA Sports for $290 million, subject to certain customary closing adjustments. The transaction, which closed effective May 31, 2025, represents a significant milestone for Topgolf Callaway Brands as it refocuses its strategic priorities on its core businesses and enhances the Company's financial flexibility ahead of the planned separation of Topgolf from its core operations. Chip Brewer, President and CEO of Topgolf Callaway Brands, stated, 'We are excited to announce the successful completion of the sale of our Jack Wolfskin business to ANTA Sports. We believe that ANTA Sports will continue to uphold the integrity and reputation of the Jack Wolfskin brand, and we extend our gratitude to our Jack Wolfskin employees for their hard work and dedication in positioning the business for its next chapter.' For more information about Topgolf Callaway Brands and its portfolio, please visit Investor/Media Contact:Katina MetzidakisEmail: invrelations@ About Topgolf Callaway Brands Callaway Brands Corp. (NYSE: MODG) is an unrivaled tech-enabled Modern Golf and active lifestyle company delivering leading golf equipment, apparel, and entertainment, with a portfolio of global brands including Topgolf, Callaway Golf, TravisMathew, Odyssey and OGIO. 'Modern Golf' is the dynamic and inclusive ecosystem that includes both on-course and off-course golf. Forward-Looking StatementsStatements used in this press release that relate to future plans, events, financial results, performance, prospects, or growth opportunities, including statements relating to the Company's liquidity and financial flexibility following the completion of the sale, the growth and positioning of the Company's portfolio of brands, increased focus on the Company's portfolio of leading brands, and statements of belief and any statement of assumptions underlying any of the foregoing, are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. The words 'believe,' 'expect,' 'estimate,' 'could,' 'would,' 'should,' 'intend,' 'may,' 'plan,' 'seek,' 'anticipate,' 'project' and similar expressions, among others, generally identify forward-looking statements, which speak only as of the date the statements were made and are not guarantees of future performance. These statements are based upon current information and expectations. Accurately estimating the forward-looking statements is based upon various risks and unknowns, including our ability to successfully execute on planned and potential transactions, including our planned separation of Topgolf, and the potential to realize the expected benefits of such transactions on the expected timeframes or at all. Actual results may differ materially from those estimated or anticipated as a result of these risks and unknowns or other risks and uncertainties. For additional information concerning these and other risks and uncertainties that could affect these statements and the Company's business, see the Company's Annual Report on Form 10-K for the year ended December 31, 2024 as well as other risks and uncertainties detailed from time to time in the Company's reports on Forms 10-K, 10-Q and 8-K subsequently filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
Yahoo
02-06-2025
- Business
- Yahoo
Topgolf Callaway Brands Completes Sale of Jack Wolfskin to ANTA Sports
CARLSBAD, Calif., June 2, 2025 /PRNewswire/ -- Topgolf Callaway Brands Corp. (NYSE: MODG) ("Topgolf Callaway Brands" or the "Company") is pleased to announce the successful completion of the sale of its Jack Wolfskin business to ANTA Sports for $290 million, subject to certain customary closing adjustments. The transaction, which closed effective May 31, 2025, represents a significant milestone for Topgolf Callaway Brands as it refocuses its strategic priorities on its core businesses and enhances the Company's financial flexibility ahead of the planned separation of Topgolf from its core operations. Chip Brewer, President and CEO of Topgolf Callaway Brands, stated, "We are excited to announce the successful completion of the sale of our Jack Wolfskin business to ANTA Sports. We believe that ANTA Sports will continue to uphold the integrity and reputation of the Jack Wolfskin brand, and we extend our gratitude to our Jack Wolfskin employees for their hard work and dedication in positioning the business for its next chapter." For more information about Topgolf Callaway Brands and its portfolio, please visit Investor/Media Contact:Katina MetzidakisEmail: invrelations@ About Topgolf Callaway Brands Callaway Brands Corp. (NYSE: MODG) is an unrivaled tech-enabled Modern Golf and active lifestyle company delivering leading golf equipment, apparel, and entertainment, with a portfolio of global brands including Topgolf, Callaway Golf, TravisMathew, Odyssey and OGIO. "Modern Golf" is the dynamic and inclusive ecosystem that includes both on-course and off-course golf. Forward-Looking StatementsStatements used in this press release that relate to future plans, events, financial results, performance, prospects, or growth opportunities, including statements relating to the Company's liquidity and financial flexibility following the completion of the sale, the growth and positioning of the Company's portfolio of brands, increased focus on the Company's portfolio of leading brands, and statements of belief and any statement of assumptions underlying any of the foregoing, are forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. The words "believe," "expect," "estimate," "could," "would," "should," "intend," "may," "plan," "seek," "anticipate," "project" and similar expressions, among others, generally identify forward-looking statements, which speak only as of the date the statements were made and are not guarantees of future performance. These statements are based upon current information and expectations. Accurately estimating the forward-looking statements is based upon various risks and unknowns, including our ability to successfully execute on planned and potential transactions, including our planned separation of Topgolf, and the potential to realize the expected benefits of such transactions on the expected timeframes or at all. Actual results may differ materially from those estimated or anticipated as a result of these risks and unknowns or other risks and uncertainties. For additional information concerning these and other risks and uncertainties that could affect these statements and the Company's business, see the Company's Annual Report on Form 10-K for the year ended December 31, 2024 as well as other risks and uncertainties detailed from time to time in the Company's reports on Forms 10-K, 10-Q and 8-K subsequently filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. The Company undertakes no obligation to republish revised forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. View original content to download multimedia: SOURCE Topgolf Callaway Brands Corp. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
