GBR Weekly | Topgolf Up For Review, Callaway And Titleist Both Report Half-Year Figures
Join us as we also look at the USGA's internship program, the PGA Tour's new sponsor for Quail Hollow, Arccos records its billionth shot, and new iron releases from Callaway.
Hi GBR community,
It’s time again to bring you the latest important industry news in golf in bite-size format to mull over while taking a break with your favorite drink in hand.
Let’s get into what to expect from this week’s edition of Golf Business Review:
Topgolf/Callaway Q2 figures - latest financial report covering Q2 and overall H1 figures for Topgolf/Callaway.
Topgolf under review - we examine the reasons behind the announcement that Topgolf could be sold off.
Acushnet’s Q2 figures - we analyze how Titleist and FootJoy have performed in Q2 and where Acushnet’s projections sit for H2.
PGA Tour announces new title sponsor - Truist Financial Corporation confirmed as Wells Fargo replacement.
USGA internship program - how the game’s governing body is getting more people into a career in golf.
Arccos hits a billion - it’s taken ten years since the company was launched for the billionth shot to be recorded.
Callaway Golf unveils new Apex irons - new design, improved technology, and striking new concept iron.
Rai wins first PGA Tour event - Englishman Aaron Rai captures his first career PGA Tour victory in dramatic fashion.
It’s gold for Ko! - Lydia Ko adds a gold medal from the Paris Olympics to add to her silver and bronze medal collection.
Topgolf/Callaway Announces Q2 Figures
The struggles appear to be continuing for Topgolf/Callaway as the company released its Q2 figures.
The headlines from the investor briefings released last Thursday (8th August) are:
Q2 revenue of $1.16 billion, down 2% on Q2, 2023
H1 revenues of $2.3 billion, down 2% on 2023
Net income dropped 47% to $62.1 million.
Revenues for 2024 are estimated to be $4.2 billion to $4.26 billion, down from the previous estimate of $4.425 billion to $4.475 billion.
Sales fell by 8% in the core golf equipment segment. The decline affected clubs, balls, and accessories, largely due to planned adjustments in the product release calendar.
Topgolf segment increased revenues by 5% to $494 million, driven by revenue from additional venues.
Topgolf’s growth has been mainly attributed to three new venues opening this year, including its 100th outdoor location in Montebello, California. The struggle in this segment has been the “same-venue” sales, which refer to existing sites that have seen revenue fall by 8% due to lighter traffic.
Callaway attributes the 8% drop in sales to changing club release dates. It has just announced the launch of its new Apex Ai200, Ai300, and TiFusion irons on 12th August, which we’ll cover in more detail later.
However, Callaway has retained its number-one spot in retail sales for drivers, fairway woods, and irons, spearheaded by the Paradym Ai Smoke range. Xander Schauffele’s success in the PGA Championship and the British Open, combined with the new iron launches, could boost Callaway’s equipment sales over Q3.
Active lifestyle brands, including Jack Wolfskin and Travis Matthews, also suffered from slower sales in Europe and China and ended the quarter 3% down.
“Our strategic review…is being conducted with the help of outside advisors, and is focused on maximizing long-term shareholder value.” - Chip Brewer, CEO, Topgolf Callaway.
Topgolf Under Review
Figures aside, the significant news that came from the investor briefing was the announcement of an immediate review of the Topgolf business model.
Topgolf’s revenue projections have dropped from $1.96 billion to $1.79 billion for 2024. Even though the numbers look healthy in relation to the three new venues that have been opened and with another four in the pipeline to be opened before the end of the year, the problems lie in the same venue sales, which have suffered. The expectation at the start of the year was for a small positive growth figure, but revised projections now forecast a loss of as much as a double-digit figure for 2024, fueled by Q1 figures showing a 7% decrease in same-venue sales.
Since Callaway merged with Topgolf in 2021, initiatives to enhance synergies have included making Callaway equipment available for sale in Topgolf locations and sponsoring Topgolf professionals. However, these initiatives haven’t borne any fruit.
Topgolf can’t just invent new sites to sustain its end of the business. The existing sites have to pull their weight; the problem is how they can do it.
Chip Brewer, CEO of Topgolf Callaway, has talked about spinning Topgolf off as a business but has also expressed his desire to explore “organic strategies to return Topgolf to profitable same-venue sales growth…”
The Chosun Daily Story
Speculation around the future of Topgolf Callaway hasn’t been too far off the radar after a story broke in South Korea’s The Chosun Daily in March indicating that three of Topgolf Callaway’s biggest investors would sell their shares, allowing Topgolf to be spun off and a potential deal with a South Korean investment firm to purchase Callaway Golf.
Brewer has not given a date on the length of time the strategic review will take place. However, he did confirm that it had already started and that he hoped it would be concluded “expeditiously.”
“We remain convinced Topgolf is a high-quality business with significant future opportunity. At the same time, we have been disappointed in our stock performance for some time, as well as more recent same-venue sales performance.” - Chip Brewer, CEO, Topgolf Callaway.
Acushnet Posts Q2 Results
Life seems a little more stable for Acushnet, as witnessed in its Q2 financial statements.
Headline figures from Titleist’s parent company include:
Second quarter sales of $684 million
$1.39 billion net sales in H1 2024
Projected net sales outlook for 2024, $2.45 - $2.5 billion
US sales rise 1.8% to $408.5 million
The company’s overall sales for Q2 showed a slight decline of 0.8% to $683.9 million, compared to $689.4 million in the same period last year.
U.S. sales presented a brighter picture, rising by 1.8% to $408.5 million. This increase was largely driven by an 8.5% surge in Titleist golf ball sales and a 4.8% improvement in FootJoy golf wear.
On the flip side, Titleist golf club sales took a hit, dropping by 9.0%, as the market responded to lower sales of second-model-year products such as TSR drivers, and fairway woods despite the higher volumes of sales for T-Series irons, new SM10 wedges, and Phantom putters.
Internationally, the picture was mixed. Sales outside the U.S. fell by 4.4% overall but by only 1.0% when accounting for currency fluctuations.
The EMEA region saw a slight sales increase of 1%, totaling $86.7 million. Japan also posted a 3.7% growth, reaching $29.8 million, while Korea’s revenues increased nearly 1% to $83.8 million.
However, the “Rest of World” category experienced a 7% decline, bringing in $75.1 million. Acushnet’s momentum in golf ball and club sales across Asia remains strong. However, the region and Europe are still working through excess inventory in footwear and apparel—an issue the company is keen to resolve.
Breaking down the performance by product category:
Golf ball sales rose by 5.3% to $247.5 million
Golf club sales dipped by 4.1% to $177.5 million
FootJoy golf wear saw a modest increase of 0.7%, reaching $157.2 million.
Sales could also be impacted by the breaking story of the new flagship GT Series drivers and fairway woods as golfers wait to get the full details of what the new range has to offer. The GT Series first broke cover at the Memorial Tournament in June, and Titleist released teaser posts on social media.
The GT Series has just been fully released, so it will be interesting to track club sales in Acushnet’s Q3 figures. In addition to the GT Series launch, FootJoy and Kjus will also release fresh products.
“There remains strong participation and enthusiasm for the game of golf, particularly in the US, where rounds of play were up 2 percent year-to-date. Rounds outside the U.S. are resilient but down slightly as markets started slowly due to poor spring weather.” - David Mahar, President and CEO, Acushnet.
“As we look ahead to the second half of the year, we are excited to launch new Titleist GT drivers and fairway metals, which are already seeing success across the global professional tours, and new products from FootJoy and KJUS for the fall and winter seasons. I would like to thank our team of Acushnet associates as they remain dedicated to delivering long-term value for our shareholders.” - David Mahar, President and CEO, Acushnet.
PGA Tour Announces Truist As New Host For Quail Hollow
The PGA Tour has confirmed that the new title sponsor for its signature event at Quail Hollow will be Truist Financial Corporation.
Last week, we reported that the PGA Tour had initially suffered from losing some of its long-term sponsors, such as Wells Fargo and Honda. Meanwhile, RBC is waiting to see what (if any) the outcome of the proposed merger between the PGA Tour, DP World Tour, and PIF before deciding to renew its title sponsorship of the Canadian Open and the Heritage.
Bringing Truist Financial Corporation on board for seven years now gives the designated signature event a solid future regardless of the outcome of the merger talks. As a designated event, 700 FedExCup points are on offer, with Rory McIlroy set to defend his title in 2025.
The tournament will remain at Quail Hollow Club, except for 2025, when Quail Hollow hosts the PGA Championship. The Truist Championship will move to The Philadelphia Cricket Club’s Wissahickon Course.
The Wissahickon Course at The Philadelphia Cricket Club, designed by the legendary A.W. Tillinghast, will provide a fitting stage for the 2025 Truist Championship. This historic course, known for its strategic design and challenging layout, has hosted numerous prestigious events, including the 2016 Senior Players Championship.
“We are honored to be the title sponsor of the PGA TOUR’s Charlotte-based Signature Event and thrilled that Philadelphia and Charlotte, two vibrant growth markets for Truist, will be featured on the PGA TOUR.” - Bill Rogers, CEO, Truist Financial Corporation.
“The Truist Championship will be a best-in-class experience for fans, thanks to the support of a hometown title sponsor that holds a vested interest in positively impacting its local communities,” - Jay Monahan, PGA Tour Commissioner.
USGA Boosts Golf Industry Future With Internship Program
Research from the American Golf Industry Coalition in 2023 highlighted the sport’s $102 billion economic impact and the 1.65 million jobs it supports, undermining the significance of the golf industry.
The United States Golf Association (USGA) is at the forefront of helping people get into a meaningful career within golf through its internship program. Recognizing the growing interest in golf-related careers, the USGA has made progress in fostering emerging talent and creating pathways to a broad range of opportunities in the game.
In 2024, the USGA supported 323 interns, a figure that nearly matches the organization’s current full-time workforce. The number reflects the USGA’s commitment to career development and its vision of nurturing the game's future.
Central to this commitment is the organization’s targeted recruiting efforts, which have successfully reached individuals from diverse backgrounds and communities.
Notable outcomes of these efforts are:
59% increase in applicants from historically underrepresented backgrounds for the P.J. Boatwright Jr. Internship Program.
12% rise in women participating in USGA internships.
In 2024, the P.J. Boatwright Internship saw a record 201 participants across the USGA’s network of 57 Allied Golf Associations (AGAs).
Established in 1991, the program is designed to provide interns with paid, on-the-job training in golf administration. This year, the USGA’s support for the program included $2.1 million in grants, partially funded by philanthropic contributions, to cover wages, travel costs, and operational support for AGAs.
The impact of the Boatwright program is undeniable.
Across AGAs, 33 percent of executive directors and 38 percent of all AGA staff members are former Boatwright interns. These numbers highlight the program’s success in launching careers and embedding young talent in the golf industry.
Upon completing the program, interns join a vast network of over 3,300 alumni who have gone on to work across various sports and industries, with many continuing to contribute to golf.
This year’s interns are as varied as the sport, with students majoring in disciplines ranging from science and technology to data analytics, research, education, and non-profit management.
The interns were strategically placed within USGA core service and program teams, where their skills can be leveraged while offering them a platform for professional growth.
Earlier this summer, 112 undergraduate and graduate students had the unique opportunity to intern at the U.S. Open in Pinehurst, N.C. This experience provided them with firsthand exposure to the inner workings of a major sporting event.
“It’s important that we don’t think of these young people simply as interns, but rather the future leaders of our game.” - Mike Whan, CEO, USGA.
Arccos Reaches One Billion Shots
Arccos celebrated its one billionth shot captured by its sensors in an article by Forbes’ Erik Matuszewski.
The billionth shot was taken by Jordan Cook, an Australian golfer, who hit an 8-iron approach shot from 145 yards on the seventh hole at Beverly Park Golf Club, New South Wales, Australia.
Arccos, founded in 2014, utilizes smart sensors fitted in each club grip, paired with a mobile app, to track every shot a golfer makes. The insights gained from this data help to produce:
A.I. rangefinder
Personalized club recommendations
Strokes gained analytics.
It’s a tool that has grown immensely in popularity, with the number of Arccos members increasing by approximately 195% since 2021.
Arccos was announced as the official game tracker of the PGA Tour in 2023. A host of professionals and industry influencers, such as Matthew Fitzpatrick and Edoardo Molinari, caddie Ted Scott, and golf influencers Grant Horvat and Erik Anders Lang, use and promote Arccos.
The platform also has partnerships with leading equipment companies, such as Cobra PUMA Golf, PING, Srixon-Cleveland Golf, and TaylorMade, as well as Club Champion, EA Sports, and Golf Digest.
“One billion shots is a massive number, but it’s really just the beginning of the journey we are on.” Arccos isn’t just about capturing data; it’s about using that data to enhance performance for all golfers, from tour professionals to casual players.” - Sal Sayed, Co-Founder, Arccos Golf
Callaway Launches New Apex Irons
Callaway has announced the launch of three new iron lines and a new naming policy for its Apex range.
The three new irons are:
Apex Ai200
Apex Ai300
Apex TiFusion
Apex Ai200
Callaway’s player’s distance iron, the Ai200, features a smaller blade length and thinner top line, giving it more of a classic blade look at address. The face is made of 455 high-strength steel, and the chassis is forged from 1025 carbon steel.
The ‘Ai’ element in the name comes from Callaway employing its Ai Smart Face design to optimize launch and spin numbers across the face while increasing ball speed.
The Ai200 also features Metal Injection Molding (MIM) in the cavity behind the head to optimize the CG within each iron and a new sole configuration that Callaway has christened “Dynamic Sole Design,” which creates a more sculpted leading and trail edge to help improve turf interaction.
Apex Ai300
Features the same new technology and forged steel combination as the Ai200 but with a slightly bigger head profile. Size aside, the Ai300 also features more offset and a thicker topline compared with the Ai200.
Callaway has also altered the Ai Smart Face in the Ai300 to create a higher launch, more forgiveness, and distance.
The new Apex releases lend themselves to creating a blended set of irons through a custom fitting process.
Pre-sale and custom fitting orders start on 15th August, and the retail release is on 23rd August. Both sets are available in right or left-handed options from release.
RRP $1,400 (£1,100, €1,300) for a set of seven irons
Apex TiFusion
The TiFusion iron is designed as much to be a proof of technology concept as anything else.
The big story for the TiFusion relates to Callaway pioneering a way to fuse titanium with steel. Callaway opted for a titanium face with a steel chassis and created a fusion process called “brazed titanium.”
The benefit for the golfer is that the titanium face offers high ball speeds to maximize performance while engineering the CG to an exact location in each iron to create stability.
Callaway has used its Ai Smart Face technology to ensure fast ball speeds across the face and consistent spin rates.
The TiFusion iron fits into the player’s distance iron category and is aimed at the better player.
Callaway has also adopted a striking black diamond-like coating finish to make these irons stand out in the bag.
The TiFusion is available for pre-sale and custom fitting orders from 15th August, with the retail release on 23rd August.
RRP $2,100 (£1,650, €1,920) for a set of seven irons
Rai Records Maiden PGA Tour Victory
English golfer Aaron Rai secured his first PGA Tour victory by winning the Wyndham Championship.
Rai, who gained his full playing privileges for the PGA Tour by finishing in the top ten of the DP World Tour Race To Dubai rankings last season, had recorded six top-ten finishes this year to put him comfortably into the FedEx Cup playoffs.
Having captured the Wyndham Championship, Rai sits at 25th in the latest FedEx Cup rankings with a strong chance of making his first Tour Championship in a few weeks at East Lake.
Sunday saw a chaotic final day, with 36 holes needing to be played due to the weather problems created earlier in the week after Storm Debby wreaked havoc over Sedgefield Country Club.
Rai had lots of work to do when the final round got underway. Four birdies in a row for Rai on the front nine couldn’t impact Max Greyserman’s lead much.
Greyserman opened up a four-shot lead after making an eagle two on the thirteenth, but the wheels came off the wagon spectacularly for Greyserman with a quadruple-bogey eight at the fourteenth to leave him tied with Rai at seventeen under par.
A further double left Greysermen trailing Rai, and after Rai hit a fantastic approach to eighteen, Rai faced a putt of just over six feet for victory. Rai calmly rolled the putt in, completing a final round 64 and ultimately taking the title by two from the unfortunate Greyserman.
“It truly is a dream come true. So many people have played a huge role in me being at this point.” - Aaron Rai, 2024 Wyndham Championship winner.
“The PGA TOUR is the pinnacle of golf and it’s amazing to be competing here week in, week out, but to have won a tournament is extremely special and something I’ll always remember.” - Aaron Rai, 2024 Wyndham Championship winner.
Ko Strikes Gold In Paris
New Zealand’s Lydia Ko was the golden girl at Le Golf National, Paris, claiming the gold medal from Germany’s Esther Henseleit, with China’s Xiyu Li taking the bronze medal.
While winning the gold medal, Ko achieved two significant achievements.
Ko now has a medal of each color in her collection. She won bronze in Tokyo in 2020 and silver at the games in Rio in 2016.
In capturing the gold, Ko has now amassed enough points to be indoctrinated into the LPGA Hall of Fame.
Ko looked to have wrapped up the gold medal early as Ko built a five-shot lead in the final round after eleven holes. However, Ko opened the door with a double bogey at thirteen, while Henseleit finished fast with birdies on the last two holes to set the clubhouse target.
Playing the last with a one-shot lead and plenty of trouble to cause a nervous golfer problems, Ko showed her class by making a birdie to win the gold medal by two shots.
For world number one, Nelly Korda, the struggles continue. Korda had an outside chance of getting into a medal spot, but a horrendous back nine of 40 shots put paid to her chances. Her struggles seem to continue after her incredible start to the year.
“Of course, I wanted to complete it [the medal set] but it’s much easier said than done. I wanted to focus on my golf and nothing else.” - Lydia Ko, gold medal winner, 2024 Olympics.
“The French fans have been awesome, kind of taking me in as one of their own. It’s definitely a life peak for me here. I don’t think I’ve experienced this kind of adrenaline before.” - Lydia Ko, gold medal winner, 2024 Olympics.