Jack Wolfskin parent company Topgolf Callaway slips into the red in third quarter

US retail group Topgolf Callaway Brands Corp. has closed the third quarter of the 2024 fiscal year with a drop in sales and red figures. The company, which includes the German outdoor equipment retailer Jack Wolfskin, subsequently lowered its annual forecasts, as management further confirmed plans to divest from the Topgolf golf simulator division.

In the three months up to September 30, group sales amounted to 1.01 billion dollars, representing a decrease of 2.7 percent (-2.9 percent adjusted for currency effects) compared to the same quarter last year. The reason for the decrease was the development in the Active Lifestyle segment, where revenues shrank by 11.1 percent (-11.6 percent adjusted for currency effects) to 266.2 million dollars. The decline was primarily due to losses in Jack Wolfskin's European wholesale business, the group explained.

In the Topgolf division, sales rose by 1.2 percent (+1.0 percent adjusted for currency effects) to 453.2 million dollars. In the golf equipment division with the core brand Callaway, revenues remained virtually flat at 293.5 million dollars (+0.1 percent adjusted for currency effects).

Earnings also declined. Adjusted operating profit shrank by 47.7 percent to 43.0 million dollars. The bottom line was a reported net loss of 3.6 million dollars, after the group had posted a profit of 29.7 million dollars in the third quarter of the previous year. Adjusted net profit, meanwhile, shrank by 88.0 percent from 35.8 to 4.3 million dollars.

According to the company, the current figures were above its own expectations. Nevertheless, management lowered its forecasts for the full year 2024. The target for sales is now around 4.20 billion dollars, after previously targeting 4.20 to 4.26 billion dollars. The forecast for EBITDA adjusted for special items was lowered from 570 to 590 million to 560 to 570 million dollars.

This article originally appeared on FashionUnited.DE. It was translated to English using an AI tool called Genesis and edited by Rachel Douglass..

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