By Roshan Fernandez

Topgolf Callaway Brands reported lower first-quarter profit after sales fell at its Topgolf venues and in its golf equipment and active lifestyle gear businesses.

The Carlsbad, Calif.-based company reported a first-quarter profit of $2.1 million, or 1 cent a share, compared with $6.5 million, or 4 cents a share, a year earlier.

Excluding one-time items, per-share earnings were 11 cents, better than the loss of 6 cents per share that analysts were expecting, according to FactSet.

Revenue fell to $1.09 billion from $1.14 billion a year earlier. Analysts surveyed by FactSet had forecast sales of $1.07 billion.

A decline in same-venue sales at Topgolf, a driving-range business, was offset by revenue from new venues. Same venue sales fell 12% at Topgolf, in line with the company's expectations.

The company last September disclosed plans to separate Topgolf from its legacy golf equipment and apparel business, with the process expected to complete in the second half of the year.

Golf equipment sales decreased due to unfavorable foreign currency rates, as well as a more competitive environment, the company said.

Active lifestyle revenue fell due to planned adjustments to the Jack Wolfskin business in Europe, partially offset by continued growth in China. Topgolf Callaway previously announced it had entered an agreement to sell Jack Wolfskin

For the full-year, the company lowered its guidance for Topgolf venue sales due to the softer consumer environment. The company now expects its Topgolf sector revenue to be between $1.68 billion and $1.79 billion, down from previous expectations of between $1.73 billion and $1.84 billion.

Same venue sales at Topgolf locations are expected to be down between 6% and 12% for the full year; previous expectations were down mid-single digits.

The company's chief executive said they are taking actions to reduce costs and mitigate the impact of tariffs.

Shares rose 6.2% to $8.39 in Monday's aftermarket trading.

Write to Roshan Fernandez at roshan.fernandez@wsj.com

(END) Dow Jones Newswires

May 12, 2025 17:28 ET (21:28 GMT)

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