Callaway Expands Topgolf Retail Brand in US and Internationally

Topgolf Callaway Brands CEO Chip Brewer has his eyes on expansion as a means to grow the “active lifestyle segment on the whole.”

On the company’s third-quarter earnings call on Thursday (Nov. 3), Brewer had a positive outlook for the sports equipment company going forward into the next quarter and beyond.

In August, the company rebranded to Topgolf Callaway Brands and changed its stock ticker symbol to MODG as a way to “emphasize our unique and dominant leadership in the Modern Golf space,” Brewer said at the time.

Like most businesses over the last quarter, Callaway did face inflation pressures in regard to wages and the cost of goods.

As a way to combat inflation, Brewer announced that the company will be increasing its prices across its various businesses, but will also be raising its employee wages to “make sure we remain competitive and that our hourly playmakers are well taken care of,” said Brewer.

Also, the Topgolf segment of the company recently opened a new style of venue in Seattle with a larger, more open lobby area that includes golf simulators and a Callaway-branded fitting studio in the lobby.

Brewer is confident in the company’s ability to reach a growing international golfing audience over the next year.

“The Callaway branded business … remain strong globally, with our apparel business in Asia performing well and our Gear business, namely golf bags and gloves delivering both market share and revenue increases,” he said.

Related: Callaway Is Now ‘Tech-Enabled Golf, Lifestyle Apparel and Entertainment Company’

The company has come a long way since 2021, when the biggest company news at that time was Callaway’s U.K. and U.S. locations being able to bounce back from pandemic-era slowdowns.

Since then, Callaway has launched 11 retail locations in the U.S. and internationally, including a new international franchise venue in Bangkok, Thailand in the third quarter.

“As we look out over the next few years, we are confident Topgolf will be a significant source of long-term value creation,” Brewer said, “Topgolf … already is a dominant leader in the dynamic off-course golf industry and we believe it will maintain this position given its significant growth prospects ahead.”

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