Group 1 - Topgolf Callaway Brands Corp. announced the resignation of CEO Artie Starrs, who will assist with the transition until September 2025 [1] - The company is conducting an executive search for a replacement and confirmed that Starrs has accepted another CEO position with an undisclosed business [1][2] - The company expressed satisfaction with Topgolf's second quarter financial results and improving same venue sales trends, attributing this to significant actions taken earlier in the year [2] Group 2 - The departure of Artie Starrs is not expected to affect the company's strategic direction or commitment to separating Topgolf, with plans for a spin-off or sale still in pursuit [2] - It is likely that a spin-off transaction will not occur until 2026, after a new CEO is appointed [2]

Industry Overview - The Zacks Leisure and Recreation Products industry is experiencing challenges due to the ongoing tariff war and soft macroeconomic data, but there is a positive trend in fitness product sales driven by growing health and fitness awareness [1][3] - The industry includes companies that provide a range of recreational products and services, thriving on economic growth that fuels consumer demand [2] Trends Impacting the Industry - The tariff war initiated by U.S. President Donald Trump is affecting the industry, with concerns about its impact on the U.S. economy amid inflation and global geopolitical tensions [3] - The golf industry is booming, with rising demand for golf equipment due to technological advancements and increased participation among young people, particularly in emerging markets like India and China [4] - There is robust demand for fitness-related products in the U.S., driven by health awareness and lifestyle changes, leading to increased investment in home workout equipment and digital fitness platforms [5] Industry Performance - The Zacks Leisure and Recreation Products industry currently holds a Zacks Industry Rank of 204, placing it in the bottom 17% of over 246 Zacks industries, indicating dismal near-term prospects [6][7] - The industry's earnings outlook is negative, with a 13.6% decrease in northbound earnings estimates since January 31, 2025 [8] Stock Market Performance - The industry has outperformed the S&P 500, with a collective growth of 49.8% over the past year compared to the S&P 500's 11.8% increase [10] Valuation Metrics - The industry trades at a forward price-to-earnings ratio of 35.08X, significantly higher than the S&P 500's 22.64X and the sector's 18.45X [13] Notable Companies - **Peloton**: Transitioning to a profitability-driven recovery, with high-margin subscription revenues contributing nearly 70% of total sales. Expected fiscal 2025 earnings growth of 72.9% and a stock increase of 84.8% in the past year [16][17] - **Playboy**: Benefiting from an asset-light licensing model and a rebound in its China licensing business, with a stock increase of 137.5% in the past year [20][21] - **Academy Sports and Outdoors**: Gaining from a growth strategy focused on brand partnerships and digital upgrades, but shares have declined by 2.3% in the past year with expected earnings decline of 1.7% for fiscal 2025 [24]

Core Viewpoint - Topgolf Callaway Brands Corp. plans to release its first quarter 2025 financial results on May 12, 2025, after market close, followed by a conference call to discuss the results and business outlook [1]. Company Overview - Topgolf Callaway Brands Corp. (NYSE: MODG) is a tech-enabled Modern Golf and active lifestyle company, offering golf equipment, apparel, and entertainment through a portfolio of global brands including Topgolf, Callaway Golf, and others [3]. - The concept of "Modern Golf" encompasses both on-course and off-course golf experiences, creating a dynamic and inclusive ecosystem [3]. Investor Relations - A live webcast and presentation of the financial results will be available on the Company's Investor Relations website [1]. - A replay of the conference call will be accessible online approximately two hours after the event concludes [2]. Contact Information - Investor contact for Topgolf Callaway Brands is Katina Metzidakis, available via email [4].