Topgolf Venue Drives Callaway Sales Higher

  • May 11, 2022
  • Scott Peters
  • Callaway Golf quarterly revenues rose on the back of a broad recovery in equipment sales and venue revenues. The company also lifted annual revenue outlook range.

    Callaway Golf Company reported first quarter 2022 revenues increased 59.6% to $1.04 billion and net income declined 71% to $88 million. 

    Diluted earnings per share in the quarter declined to 44 cents from $2.19. 

    Net revenues increased $388.6 million, driven by a $229.4 million increase in the Topgolf business which was included for three months in 2022 compared to one month in 2021 due to the timing of the merger. 

    Golf Equipment sales increased $91.1 million and apparel and gear sales increased $68.1 million. 

    Changes in foreign currency rates had a $21.2 million negative impact on the quarterly revenues. 

    GAAP-based net income decreased due the $252.5 million in gains resulting from the Topgolf acquisition in March 2021 partially offset by favorable $65.4 million tax allowance on a comparable basis. 

    Adjusting for the acquisition related gains and tax valuation allowance and other items, the quarterly earnings declined to $70.9 million from $76.6 million a year ago.   

    The first quarter 2021 results do not include $27.8 million of pre-tax loss from Topgolf for January and February, which occurred prior to the closing of the merger.

    Guidance and Outlook 

    The company lifted annual revenue outlook to between $3.935 billion and $3.970 billion and adjusted operating earnings between $535 million and $555 million. 

    Company and Stock 

    Callaway Golf Company is headquartered in Carlsbad, California and employs about 4,200 people. 

    Callaway stock jumped 13% to $20.30 after the release of earnings and for the year the stock is down 27%. 

    Full year 2022 net revenues estimate assumes Topgolf segment revenue of approximately $1.56 billion for the twelve months ended December 31, 2022, Golf Equipment segment revenue increasing approximately 10% year-overyear and Apparel, Gear and Other segment revenue reaching approximately $1 billion. 

    Topgolf full year same venue sales are expected to grow at mid-to-high single digits compared to 2019, up from the previous estimate of low single digits growth, as walk-in business remains strong and the events business continues to recover more quickly than originally anticipated.

Annual Returns

Company Ticker 2022 2021 2020
Callaway Golf Company ELY -21% 15% 13%

Press Release