Topgolf Callaway Brands Cuts Full-Year Outlook

Topgolf Callaway Brands recently announced a revised outlook for its full-year sales and earnings, citing a potential slowdown in business at its popular entertainment venues. The company, known for its Topgolf driving ranges and golf equipment, now targets full-year sales of $4.235 billion to $4.26 billion, down from a previous estimate of $4.42 billion to $4.47 billion. In comparison, last year's sales totaled $4 billion.

Furthermore, the company has adjusted its forecast for Topgolf revenue to approximately $1.745 billion, lower than the previous guidance of $1.9 billion. In the previous year, the unit reported sales of $1.55 billion.

Surprisingly, Topgolf's same-venue sales, which eliminate the impact of new openings and closings, are anticipated to slightly decrease for the year. This revision contrasts with the company's earlier announcement in August, where they predicted a mid-to-high single-digit percentage increase in same-venue sales for the year.

Due to the weaker-than-expected third-quarter results at the Topgolf locations, Chief Executive Chip Brewer mentioned that same-venue sales were not meeting projections. Additionally, adverse foreign exchange rates have negatively impacted the company's performance. As a result, cost-cutting measures are being implemented, and capital expenditures will be reduced.

• Will Feuer