Topgolf Callaway Brands Corp. (MODG) signed a multiyear agreement with Golf Saudi Entertainment LLC (Golf Saudi) to expand its brands in Saudi Arabia. This deal includes popular brands like Topgolf, Callaway, TravisMathew, Odyssey and Ogio, further supporting the company's global growth. MODG is expanding into the Middle East by partnering with Golf Saudi to establish its presence in Saudi Arabia. This collaboration will introduce innovative offerings and enhance the growth of golf in the region, positionin ...

Core Viewpoint - Topgolf Callaway Brands Corp (NYSE:MODG) is splitting into two distinct businesses, with Callaway focusing on golf equipment and active lifestyle products, while Topgolf will concentrate on golf entertainment [1] Group 1: Company Performance - MODG's stock is currently trading at $10.65, having experienced a decline of 1% [1] - The stock reached a 10-month low of $9.90 on August 30, 2024, and is down 22.6% year-to-date and 36% year-over-year, although it has gained 10.6% over the past week [2] Group 2: Market Sentiment - Short-term options traders are showing bearish sentiment, indicated by a Schaeffer's put/call open interest ratio (SOIR) of 0.87, which is higher than 76% of readings from the past year [2] - Analysts' responses to the separation may vary, with eight out of thirteen analysts maintaining "hold" or worse ratings, and 13.5% of the stock's total float sold short [3]

Key Takeaways Shares of Topgolf Callaway rose in premarket trading Thursday, a day after the company announced its intention to separate into two companies just over three years after their merger was completed. The companies merged in March 2021, calling it a "highly complementary fit" at the time. Callaway now believes the investments it has made set Topgolf up for long-term growth, and sees the best way forward for Topgolf as a separate public company. Shares of Topgolf Callaway Brands (MODG) rose about ...

Separation Will Create a Leading Golf Equipment and Active Lifestyle Company with Strong Free Cash Flow and the Category Leading, High-Growth, Pure-Play Venue-Based Golf Entertainment Business Both Businesses Will Have Strong Balance Sheets, Positive Free Cash Flow and the Required Scale to be Leaders in Their Respective Markets CARLSBAD, Calif., Sept. 4, 2024 /PRNewswire/ -- Topgolf Callaway Brands Corp. (the "Company" or "Topgolf Callaway Brands," "we," "our," "us") (NYSE: MODG) today announced that its B ...

The two-level venue will be located along I-40 at Guilford College Road DALLAS, Aug. 29, 2024 /PRNewswire/ -- Modern golf entertainment leader Topgolf announced today it will open Topgolf Greensboro on Friday, Sept. 13. This is the fourth Topgolf venue in North Carolina including locations in Charlotte and Durham. The Basics Topgolf Greensboro celebrates grand opening on Friday, Sept. 13Topgolf Greensboro celebrates grand opening on Friday, Sept. 13 If you've never been to a Topgolf venue before, think of i ...

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 ...