The two-level venue sits within The Parkways development in West Des Moines DALLAS, Aug. 22, 2024 /PRNewswire/ -- Modern golf entertainment leader Topgolf announced today it will open its first venue in Iowa, Topgolf Des Moines, on Sept. 6. This is Topgolf's 101st global outdoor venue. Topgolf Basics Topgolf opens its first venue in Iowa, Topgolf Des Moines, on Sept. 6.Topgolf opens its first venue in Iowa, Topgolf Des Moines, on Sept. 6. Never been to a Topgolf venue? Think of it as a modern golf experienc ...

Morsa Images/DigitalVision via Getty Images Summary Following my coverage of Topgolf Callaway Brands Corp. (NYSE:MODG) in May'24, for which I recommended a buy rating as the business was progressing well, which, I thought, would enable MODG to beat the FY24 guidance, this post is to provide an update on my thoughts on the business and stock. I revised my rating from buy to sell as I have lost confidence in MODG's ability to drive positive SVS growth in the near term, especially since all the initiatives imp ...

Photographer: Kent Nishimura/Bloomberg © 2024 Bloomberg Finance LP Deal Overview On August 7, 2024, Topgolf Callaway Brands Corp. (NYSE: MODG, $11.73, Market Capitalization: $2.2 billion), a prominent player in golf equipment and entertainment, announced that it is conducting a formal strategic review of its businesses, wherein the management is exploring a potential spin-off the Topgolf segment (for more information, visit spinoffresearch.com). This review includes the assessment of organic strategies to r ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was $1.158 billion, a 2% decrease year-over-year and 3% below expectations, primarily due to lower same venue sales at Topgolf [6][29] - Q2 adjusted EBITDA was $206 million, approximately flat compared to the previous year, exceeding expectations due to strong operational efficiencies [28][29] - Full year revenue expectations have been lowered by approximately $225 million to a range of $4.2 billion to $4.26 billion, with EBITDA outlook revised to $570 million to $590 million [6][36] Business Line Performance Changes - Topgolf revenue grew 5% to $494 million, driven by new venue openings, with operating income up 28% year-over-year [30] - Golf Equipment revenue decreased 8% year-over-year to $414 million, attributed to timing of product launches and foreign exchange headwinds [31] - Active Lifestyle segment revenue decreased 3% year-over-year, primarily due to softness in Jack Wolfskin [32] Market Data and Key Metrics Changes - Same venue sales at Topgolf declined 8% in Q2, with expectations for full year same venue sales to decline very high single digits to low double digits [9][12] - The U.S. golf market remains healthy, with Callaway holding strong market shares in various categories, while the Korean market is experiencing softness [23][24] Company Strategy and Development Direction - A formal strategic review of the Topgolf business is underway, focusing on maximizing long-term shareholder value and assessing both organic and inorganic strategies [4][5] - The company aims to continue expanding Topgolf venues, targeting an average of 10 new venues per year starting in 2025, despite current sales volatility [45] - Investments are being made to enhance digital capabilities and promotional strategies to drive traffic and improve same venue sales [13][14][62] Management's Comments on Operating Environment and Future Outlook - Management noted that persistent inflation has led to reduced consumer discretionary spending, impacting traffic at Topgolf venues [8] - The company remains confident in its ability to drive same venue sales growth over time, despite current economic challenges [17][42] - Management emphasized the importance of operational efficiencies and cost management in mitigating revenue impacts [36][42] Other Important Information - The company successfully reduced inventory by $193 million year-over-year, indicating effective inventory management [28][35] - Available liquidity increased by $136 million compared to the previous year, reflecting strong cash flow generation [28][32] Q&A Session Summary Question: Does the current same venue sales trajectory affect future unit growth at Topgolf? - Management believes it is essential to continue building venues, expecting to add an average of 10 per year starting in 2025, despite recent sales volatility [45] Question: What is the expected Q3 benefit from the APEX launch? - Management anticipates a slight benefit from launch timing in Q4 compared to Q3, with expectations for Golf Equipment to be up in the second half of the year [48][49] Question: What are the current pricing strategies at Topgolf? - Management acknowledges pricing as a concern for consumers and is focusing on selective promotions to drive traffic while protecting brand value [51][52] Question: Can you elaborate on the Topgolf strategic review? - The review is assessing all alternatives to maximize long-term shareholder value, including potential inorganic options [53][68] Question: How do the Golf Equipment and Topgolf consumers differ? - The Golf Equipment consumer is generally wealthier and less sensitive to economic downturns compared to the Topgolf consumer [56]

Poor comp sales and lowered guidance caused the stock to crumble yet again. Shares of Topgolf Callaway Brands (MODG -6.35%) slipped close to 25% this week, according to data from S&P Global Market Intelligence. The owner of Callaway, Topgolf, and TravisMathew posted weak growth for the second quarter of 2024. Suffering for many years, the stock is now down 20% year to date and 33% over the last 12 months. Here's why Topgolf Callaway stock fell yet again this week. Lower Topgolf traffic, guidance reduction T ...

Topgolf Callaway Brands (MODG) reported $1.16 billion in revenue for the quarter ended June 2024, representing a year-over-year decline of 1.9%. EPS of $0.42 for the same period compares to $0.39 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $1.19 billion, representing a surprise of -2.67%. The company delivered an EPS surprise of +50.00%, with the consensus EPS estimate being $0.28. While investors closely watch year-over-year changes in headline numbers -- revenue and earnin ...

Topgolf Callaway Brands (MODG) came out with quarterly earnings of $0.42 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.39 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 50%. A quarter ago, it was expected that this maker of golf equipment and accessories would post earnings of $0.01 per share when it actually produced earnings of $0.09, delivering a surprise of 800%. Over ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Title of Each Class Trading Symbol(s) Name of Each Exchange on which Registered Common Stock, $0.01 par value per share MODG The New York Stock Exchange Form10-Q ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2024 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period to Commission file numb ...

Exhibit 99.1 TOPGOLF CALLAWAY BRANDS ANNOUNCES SECOND QUARTER 2024 RESULTS Announces Formal Strategic Review of Topgolf Including Organic and Inorganic Alternatives HIGHLIGHTS • Q2 Net Income of $62 million, Non-GAAP Net Income of $83 million, and Adjusted EBITDA of $206 million were all ahead of expectations. • Q2 Consolidated Revenues were down 1.9% year-over-year and full year Revenue and Adjusted EBITDA outlook lowered to a range of $4,200 - $4,260 million and $570 - $590 million, respectively. • Mainta ...

Announces Formal Strategic Review of Topgolf Including Organic and Inorganic Alternatives HIGHLIGHTS Q2 Net Income of $62 million, Non-GAAP Net Income of $83 million, and Adjusted EBITDA of $206 million were all ahead of expectations. Q2 Consolidated Revenues were down 1.9% year-over-year and full year Revenue and Adjusted EBITDA outlook lowered to a range of $4,200 - $4,260 million and $570 - $590 million, respectively. Maintained #1 U.S. model market share in Driver, Fairway Woods and Irons with Ai Smoke ...