Callaway Looks to Create Its Own Topgolf Spinoff After Disappointment

Callaway is looking to potentially create its own Topgolf spinoff after the company said it has been disappointed with its stock performance and lack of growth in sales.

Topgolf saw an 8 percent drop in same-venue sales after “softer-than-expected traffic” kept the business from seeing any sort of improvement. Segment revenue increased 5 percent in Q2, but the company said this was due to new locations.

Callaway has announced a full strategic review of its Topgolf business.

Among the “inorganic alternatives” for growth, the company is exploring a “potential spin of Topgolf.”

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CEO Chip Brewer said the company “has been disappointed” in both stock performance and same-venue sales performance.

Callaway might have merged with Topgolf in 2021, but the company first invested in the entertainment driving range way back in 2006. Callaway Topgolf Brands was established three years ago upon the COVID-19 pandemic ending and the game of golf seeing a sizeable increase in interest.

Topgolf is, without a doubt, a great entertainment venue, but perhaps it would be able to grow significantly if at least a portion of it was catered to the true golfer. The experience is undoubtedly fun in a group setting, but it may not be the best place to work on your game.

This is where the entire experience could be overhauled to potentially promote more sales, especially with dedicated range memberships that allow for unlimited range time. 

Cover Image via Callaway