Shares of Topgolf Callaway Brands slid 19% after hours on Wednesday after the golf-equipment and entertainment company cut its full-year sales and profit outlook and offered a weak fourth-quarter sales forecast following what it said was a “challenging” third quarter. The company, which sells Callaway golf clubs and other equipment and runs the Topgolf recreational driving-range chain, said it expected full-year sales of $4.235 billion to $4.26 billion, down from a prior outlook of $4.42 billion to $4.47 billion. It said it expected full-year adjusted earnings per share of 39 cents to 43 cents, down from earlier expectations for 63 cents to 69 cents. The company said it expected fourth-quarter sales of $847 million to $872 million, below FactSet estimates for around $1 billion in sales. During the third quarter, where per-share profits topped expectations but sales just missed, management cited cooling trends at Topgolf, following “a post-Covid surge in the corporate events business last year,” a decrease in golf-ball sales and fewer equipment product launches.
