Topgolf Callaway Brands has reported declines in both sales and profit for the second quarter, which management attributed mainly to the sale of its Jack Wolfskin business.

The company announced the sale of the premium outdoor apparel brand to Anta Sports for $290 million in April, and the transaction was complete by May 31.

The company’s net revenues fell 4.1 per cent to $1.1 billion for the quarter ended June 30.

Income from operations increased $2.8 million to $105.8 million, but its net income plunged 67.3 per cent to $20.3 million. Besides the Jack Wolfskin divestment, increased foreign currency hedge losses and income tax expenses impacted that result.

At Topgolf, revenue was down 1.8 per cent to $485.3 million, with a 6 per cent decline in same-venue sales being partially offset by contributions from new locations.

The company announced its plans to spin off the Topgolf business last year, but now expects such a transaction would not occur until next year amid the resignation of Topgolf CEO Artie Starrs.

The golf equipment segment, which includes the golf clubs and golf balls business under the Callaway and Odyssey brands, saw a 0.5 per cent increase in revenue. The active lifestyle, which includes TravisMathew, Ogio and Jack Wolfskin brands, slid 14.4 per cent.

“We are pleased with our second quarter financial results as we met or beat expectations in all segments of our ongoing business,” said Chip Brewer, CEO of Topgolf Callaway Brands. 

“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.”

For the full year, the company expects consolidated net revenues of $3.80-$3.92 billion, representing a decline of 7.5-10 per cent.