Sports equipment retailer Topgolf Callaway Brands has reported “strong performance” across all business segments in its second quarter.
The company’s portfolio includes Topgolf, Callaway, Travis Mathew, Toptracer, Odyssey, Ogio, Jack Wolfskin and WGT.
For the quarter to June 30, Topgolf revenue grew 16.6 per cent to $67.1 million reflecting the brand’s ongoing momentum with the modern golf consumer.
Adjusted EBITDA reached $92.1 million or by 6.7 per cent due to an increase in revenue and improved operational efficiencies while operating income fell to $44 million due to investments in marketing and labor.
Meanwhile, golf equipment segment revenue fell 0.2 per cent to $451 million, due to the impact of negative foreign currency and an inventory fill-in in the second quarter of last year.
This fall was largely “offset” by an increase in golf ball sales due to improved supply and strong demand.
The active lifestyle segment reported a 0.8 per cent drop in revenue to $257.9 million due to the “year-over-year difference” in wholesale shipment timing in Europe during the corresponding period.
President and CEO of Topgolf Callaway Brands, Chip Brewer, said he is “pleased” with the “market gains” made in the golf equipment segment and the continued strength of the brand’s Topgolf business.
“The excitement around the game of golf remains strong with positive rounds played, strength in consumables, particularly golf balls and an engaged modern golf consumer.
“Looking ahead, we believe that our unique and attractive portfolio of leading brands continues to be very well-positioned to benefit from the sustained momentum in both off-course and on-course golf,” Brewer said.
