Mixed trading news for industry giants

Topgolf Callaway has seen its shares rise and Acushnet Holdings its shares fall slightly, after they posted fourth quarter results.

Shares of Topgolf Callaway rose by seven percent after the golf-equipment maker and venue operator reported the results and said demand during the holiday season was better than forecast.
Fourth-quarter revenue topped analysts’ expectations, according to a FactSet survey.

At the company’s Topgolf venues, same-store sales fell three percent, but that was better than the company anticipated. Demand was driven by consumers, rather than corporate events.

Chief executive Chip Brewer said on a conference call that the company is taking steps to bolster demand and create more cross-brand synergies. Callaway, the legacy golf club and ball brand, is going to make clubs that are meant to convert Topgolf customers into on-course golfers, he said.

The company is also working on mining its trove of Topgolf customer data, and bolstering Topgolf demand by offering more promotions.

Meanwhile, Acushnet Holdings Corp. said its consolidated sales for the quarter decreased 7.7 percent, due to a decrease in Titleist golf clubs as a result of lower sales volumes of second model year TSR drivers and TSR fairways which were launched in the third quarter of 2022 and lower sales volumes in FootJoy golf wear, primarily footwear. Those decreases were partially offset by an increase in Titleist golf balls, primarily due to higher sales volumes and average selling prices of ProV1 and ProV1x golf balls.

Its CEO, David Maher, said: “The golf industry is healthy, and we are encouraged by the sport’s energy and appeal, with participation vibrant across regions. Looking to 2024, we are planning for growth across all of our segments and expect to make several investments to expand upon our product development, operations, golfer connection and digital engagement capabilities to best support our trade partners and golfers.”

Shares of Acushnet (GOLF) were down 0.23 percent in premarket trading.