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By Will Feuer
Topgolf Callaway Brands cut its full-year outlook for sales and earnings, forecasting a slowdown in business at its namesake entertainment venues.
The company, which operates Topgolf driving ranges and makes golf equipment, is targeting full-year sales of $4.235 billion to $4.26 billion, down from a prior outlook of $4.42 billion to $4.47 billion. Last year, sales were $4 billion.
The company is forecasting Topgolf revenue of about $1.745 billion, down from previous guidance for $1.9 billion. Last year, the unit reported sales of $1.55 billion.
Topgolf’s same-venue sales, which strips out the effects of new openings and closings, are now expected to fall slightly for the year. In August, the company said it expected same-venue sales to rise by a mid-to-high single digit percentage for the year.
Topgolf Callaway also cut its annual forecast for adjusted earnings to 39 cents to 43 cents a share, down from prior guidance for 63 cents to 69 cents a share.
Chief Executive Chip Brewer said same-venue sales at the Topgolf locations for the third quarter were worse than expected. He said foreign-exchange rates are also weighing on results. The company is cutting costs and pulling back on capital expenditures.
Write to Will Feuer at [email protected]
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