Callaway Golf Company expects annual growth projections from fiscal 2021 through 2025 of 10 to 12 percent, led by more than 18  percent growth at Topgolf growth in the high-single digits in its non-Topgolf businesses. The company provided its growth plan as part of its Investor Day.

The non-Topgolf businesses include Golf Equipment, Apparel, Gear & Other, and Corporate and includes the Callaway Golf brand, TravisMathew and Jack Wolfskin.

Adjusted EBITDA annual growth from fiscal 2021 through 2025 is expected in the range of 15 to 18 percent with gains over 25 percent at Topgolf and increases of more than 10 percent in the non-Topgolf businesses. Adjusted EBITDA Margin is projected to improve to mid-teens with margins in the mid-to-high teens at Topgolf and in the low-to-mid teens in the non-Topgolf businesses.

During the event being held today in Los Angeles, members of the Callaway executive leadership team will provide an update on business performance and growth strategy, including the company’s golf equipment technology and innovation, successful domestic and international expansion of Topgolf and Toptracer, sustainable and attractive lifestyle brand momentum and integrated supply chain capabilities. The team will also highlight Callaway’s ability to capitalize on digital revenue and cross-segment synergies and its drive towards long-term value creation.

“As the leader in Modern Golf, Callaway is uniquely positioned to thrive in the near and long-term. Our diverse, high-growth and global business creates compelling opportunities to generate value for Callaway shareholders,” commented Chip Brewer, President and Chief Executive Officer of Callaway. “Our proven leadership position in the golf equipment segment with strong brand equity unlocks opportunities to continue to generate results above the industry average results. As a first mover in the off-course golf space, Topgolf has unparalleled brand momentum with significant whitespace for growth and is a key contributor to our long-term strategy. Lastly, our apparel business is bolstered by strong active lifestyle brands such as TravisMathew and Jack Wolfskin, which together present a significant runway for profitable growth as we exit our investment period.”

“The portfolio of brands that comprise Callaway Golf company are well-positioned with deep competitive moats, supported by strong growth prospects and amplified by common underlying trends and synergy opportunities,” continued Mr. Brewer. “By successfully executing on our growth framework and leveraging synergies, we expect to exceed $800 million in adjusted EBITDA by 2025. I have never been more excited about the direction of our company and the opportunities ahead.”

First Quarter 2022 Update

The company is pleased with the performance of all three business segments and is providing the following business update for the first quarter ended March 31, 2022:

  • Consolidated net revenue of $1.04 billion, $15 million higher than the top end of the company’s guidance range
    Topgolf net revenue exceeded the company’s expectations, with first quarter same venue sales up 2 percent when compared to the same period in 2019
  • Improved supply in Q1 in the Golf Equipment segment and continued high demand
  • TravisMathew showing strong performance in the Apparel, Gear and Other segment
  • Repurchased $25 million shares in the period

Based on first quarter performance, for the remainder of the full year 2022, the company now expects Golf Equipment net revenue to increase approximately 10 percent from the prior year and Apparel, Gear and Other net revenue to increase to approximately $1 billion.

Photo courtesy Callaway Golf